Pre-Market Open Commentary for 03 March 2010
DJIA: 10405.98 +2.19
Nasdaq Composite: 2280.79 +7.22
US stocks eked out modest gains on Tuesday following the February auto sales report, some upbeat company news and signs that Greece will not default on its debts. Toyota reported a 9% YoY fall in sales in February, slightly ahead of expectations of a 10% decline. The other auto companies reported higher February sales with Ford Motors’ sales jumping 43% YoY while GM reported worse-than-expected sales increase of 12% YoY for February.
On the corporate front, a bidding tussle lifted the market with CF Industries relaunching its bid for fellow fertilizer firm Terra Industries, offering US$4.75bil in cash and stock after giving up an aggressive takeover attempt in January. CF headed back into the fray after Terra agreed to a US$4.1 buyout from a competing bidder, Norway’s Yara.
There were also signs that the debt situation in Greece is under control with the Greek government expecting to announce further initiatives on Wednesday, after already announcing plans to raise the retirement age and freeze salaries, to rein in the country’s deficit.
All the major indices rose with the Dow Jones Industrial Average gaining a marginal 0.02% while S&P 500 rose 0.23% to 1,118.31. Nasdaq composite added 0.32%.
Wednesday will bring the economic readings of ISM services sector, weekly oil inventories and the Federal Reserve’s “beige book” reading on the economy.
In Singapore today:
Trading on Tuesday was subdued as investors moved to the sidelines after the corporate reporting season ended. Following gains in early trading, the local bourse consolidated, in reaction to HSBC’s weaker-than-expected results, which caused the Hang Seng to end 0.7% lower as HSBC accounts for 14% on the Hang Seng index. The STI ended 1.8 points lower at 2772.2. For every stock that gained, 1.6 fell. Turnover was 1.3bil shares with a value of $1.3bil traded.
Genting was again the most active counter for the day and the share slumped 4 cents to a six-month low of 87 cents on 197mil shares on rumours of a cash call. `I think such rumours are the work of those who had shorted the stock earlier' a trader said. Thinly traded shares of Sarin sprang to life and rose 6.5 cents to 47.5 cents on heavy volume of 8.1 mil shares following rumours that it may be taken private.
Expect market to be range-bound again today taking cues from the modest overnight gains in Wall Street. In the absence of fresh leads during Asian trading, investors are likely to remain side-lined, awaiting the economic readings from the US market today.
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Mid Day March 3. STI in tight trading range.
An early rally on Wall Street failed to gain traction after a Federal Reserve governer said that rates should go up sooner rather than later. Technology issues led the retreat and Wall Street was left with single digit gains at the closing bell. It was a choppy day for Asian markets on selective gains led by commodities helped by a weaker US dollar. The STI index danced about in a tight trading range and ended the mid day session 2.43 points lower at 2769.77. For every stock that rose, 2 fell. Turnover was 710mil shares with a value of $598mil traded.
With stocks trading within a narrow range on a lack of fresh leads, investors are being nudged to the sidelines. `I think over the near term, traders would be eyeing the key US jobs data this Friday' a dealer mused.
Shares of Sarin put on half cent at 48 cents on recent rumours that company may be privatised. It had earlier touched a high of 50 cents in morning trades. Sing Holding rose 1 cent at 41 cents as traders bidded up the stock ahead of its property launch next week. Other gainers included Jardine C&C, Jardine Strategic, SIA, Jardine Matheson, SIA, CapitaLand, City Developments, Keppel Land, Haw Par and Semb Marine that rose between 2 and 66 cents.
On the balance, shares of UOB, DBS, Wilmar, Straits Trading, OCBC Bank, UOL, SATs Services, Keppel Corp, Olam and Venture Corp eased between 1 and 16 cents.
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Market close March 3. STI edges higher in choppy trading
It was a choppy day for Asian mark ets on selective gains led by commodities helped by a weaker US dollar. The STI index danced about in a tight trading range and ended day 10.59 points higher at 2782.79. For every stock that rose, 1.5 fell. Turnover was 1.29bil shares with a value of $1.14bil traded.
With stocks trading within a narrow range on a lack of fresh leads, investors are being nudged to the sidelines. `I think over the near term, traders would be eyeing the key US jobs data this Friday' a dealer mused.
Shares of Sarin closed down a cent at 46.5 cents on recent rumours that company may be privatised. It had earlier touched a high of 50 cents in morning trades.
Sing Holding rose 1.5 cent at 41.5 cents as traders bidded up the stock ahead of its property launch next week. Other gainers included Jardine C&C, Jardine Strategic, SIA, Jardine Matheson, Keppel Land, and Haw Par that rose between 7 and 24 cents.
On the balance, shares of UOB, F&N, Hyflux, Venture, Creative, and S p Land, eased between 5 and 8 cents.
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