Pre-Market Open Commentary for 29 January 2010
DJIA: 10120.46 -115.7
Nasdaq Composite: 2179 -42.41
The benchmark Dow Jones Industrials fell another triple digits overnight on worse than expected employment data, which deflated optimism over the pace of the economic recovery. The Labor Department said initial claims for unemployment fell less than expected last week. The number of claims remained around 470,000, against expectations for a drop to 445,000. Continuing claims fell to 4.6m from 4.66m previously, but still worse than the expected figure of below 4.6m.
Separately, December durable goods orders rose 0.3 per cent after falling 0.4 per cent in November but this was also lower than expectations of a 2 per cent gain.
Another uncertainty which had been overhanging sentiment, however, was removed later in the day after Federal Reserve Chairman Ben Bernanke was confirmed for another term starting next mo n th. The other positive news was from car maker Ford Motor which announced its first full-year profit since 2005, but this did little to lift the selldown which was underway.
The major indices all fell some 1.1 per cent to 1.9 per cent. After the close of trading, Microsoft reported higher than expected quarterly sales and earnings due to strong sales of Windows 7. Amazon.com also announced quarterly sales and earnings that were ahead of consensus estimates.
Crude futures were flat after recent falls. It had touched a six-week low on Wednesday. Crude oil for March delivery slipped US3 cents to US$73.64 per barrel.
In Singapore today:
Asian markets were firmer yesterday against the recent trend where the markets closed weaker after an initial gain. The STI index rose 51.42 points at 2757.68 points on short covering and bargain hunting. Turnover was 1.58bil shares with a value of $1.57bil traded.
But expect this to reverse again after Wall Street‚s overnight fall and some signs that the economic recovery is not as firm as expected. We expect the STI to close negative today ahead of the weekend as the selling trend remains intact and hopes of a Lunar New Year rally appear to be fading. Instead, traders are bracing for a consolidation after recent strong gains in the broader market which led to over bullishness.
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Mid Day January 29. Asian markets recovered some lost ground on short covering.
`One swallow does not make a summer' or does it? The volatility this week was probably the last thing that some retail investors had anticipated; especially if one was preparing for a Chinese New Year Rally. `The trend may have moderated downwards but with short term charts in the oversold, this could be viewed as an opportunity' a dealer said. `The question is whether one can tolerate the near term volatility'. Wall Street fell over 1 per cent overnight, erasing gains from the previous session. Asian bourses opened down on knee jerk selling but regained some lost ground on short covering. The STI index ended 16.39 points down at 2741.29 off its nadir at 2719.48 points. For every stock that rose, 3 fell. Turnover was 947.6 mil shares with a value of $1.169bil traded.
The day got off to a wobbly start with the negative lead from Wall Street. Short sellers gained the upper hand but gave in to short covering when the Chinese indices started to trek up. Yanlord shares rebounded 4 cents at $1.74 after having fallen about 15 per cent this week. The company has just announced it has achieved contract sales of RMB$840mil year to date which was in line with most expectations. Performing better were shares of Creative Technology, Jardine C&C, Haw Par, SIA, Starhub and Wing Tai that rose between 4 and 12 cents.
The frail sentiments was probably sending the `jelly nellies' out the door but cheaper relative prices appear to appeal to others who think a technical rebound would accompany every sharp drop. While that latter could be true, fragile sentiments and the trend as dictated by Wall Street and the Chinese indices would mean `weak buying' in the short term.
Nonetheless; despite negative, bargain hunting and short covering was helping shares of Cosco Corp, Sinotel, Yingli, Ezra, IndoAgric, Biosensors, Olam, Noble Group and Straits Asia that finished between half and 6 cents down.
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Market close Jan 29. Singapore shares lower for the week
Singapore shares recovered some of the earlier falls but still closed lower with cautious investors ahead of the weekend. Asian bourses opened down on knee jerk selling but regained some lost ground on short covering. The STI index ended 12.33 points down at 2745.35 off its nadir at 2719.48 points. For every stock that rose, 3 fell. Turnover was 1.76bil shares with a value of $1.95bil traded.
The day got off to a wobbly start with the negative lead from Wall Street. Short sellers gained the upper hand but gave in to short covering when the Chinese indices started to trek up. Yanlord shares rebounded 6 cents at $1.76 after having fallen about 15 per cent this week. The company just announced it has achieved contract sales of RMB$840mil year to date which was in line with most expectations.
Performing better were shares of Wing Tai, Starhub, M1, and Haw Par that rose between 5 and 8cents.
Top losers for the day included OCBC, down 16 cents to $8.19, Straits Trading, down 15 cents to $1.10 a nd Jardine C&C, down 14 cents to $25.30.
Showing newest 19 of 27 posts from January 2010. Show older posts
Showing newest 19 of 27 posts from January 2010. Show older posts
Friday, January 29, 2010
Thursday, January 28, 2010
28 Jan 10 : A rebound. Will it last.
Pre-Market Open Commentary for 28 January 2010
DJIA: 10236.16 +41.87
Nasdaq Composite: 2221.41 +17.68
The US market managed gains after the Federal Reserve held interest rates steady and hinted it would continue to do so for the foreseeable future (despite dissent from one policymaker, Kansas City Fed President). The closely watched statement also provided a more upbeat guidance on the economy saying that the economy has continued to strengthen since the December meeting and the pace of the slowdown in the labour market is slowing. However, there was no insight on when the Fed plans to loosen its accommodative policy. Apple’s introduction of its new iPad tablet computer at a lower-than-expected starting price of US$499 further lifted the advance.
A less upbeat reading on new home sales and conservative forward earnings guidance did not derail the market advance. New homes sales plunged to a 9-month low, falling 7.6% to a seasonally adjusted annual rate of 342,000 in December, from a revised rate of 370,000 in November. The corporate results of Caterpillar and Boeing both topped analyst expectations, with Caterpillar reporting weaker YoY revenue and earnings whilst Boeing reported quarterly profits (against losses a year ago) and YoY revenue growth. However, both companies issued conservative forward earnings guidance for 2010 that fell short of analyst expectations.
All the major indices ended higher, with the Dow Jones Industrial Average gaining 0.41% and S&P 500 climbed 0.49% to close at 1,097.50. Nasdaq composite advanced 0.80%.
On Thursday, economic readings of durable goods orders and the weekly reading on initial jobless claims will set the market tone. The corporate results of Ford Motor, Amazon.com and Mircosoft will also be released on the same day.
US light crude oil for February delivery fell US$1.04 to settle at US$73.67 a barrel.
In Singapore today:
The Asian markets were mixed on Wednesday after Tuesday’s terrifying selloff on continued deleveraging. In the local bourse, an early rebound fizzled out in late trading with blue chips coming under pressure from Europe, turning earlier gains into losses. The STI index suffered a six-day decline, losing 34.07 points to close at 2706.26. Market breadth was negative and for every stock that rose, 2.87 fell. Turnover was 2.5bil shares with a value of $2.24bil traded.
Gainers for the day included Jardine C&C, HL Asia, Kep Corp, SIA Engg, and SMRT, that rose between 3 and 34 cents. New listing Ryobi Kiso debut at 29 cents but failed to gain traction. Stag selling pushed it to close just at its 26 cents offering.
The market is likely to stage a rebound following Fed Reserve’s guarded upbeat view of the US economy and renewed pledge to keep interest rates near zero. Following the past six-day of massive selloff, the market is likely to draw in bargain-hunters. However, the overall mood of cautious is expected to prevail as the market awaits the US Senate’s vote due today on the Fed Reserve’s chairman’s confirmation as the Fed Chief for a second term.
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Mid Day January 28. Bears took a tentative breather.
Asian markets were broadly higher on a technical rebound boosted by the positive lead on Wall Street. US stocks rebounded led by firmer financials after the Federal Reserve left interest rates unchanged and would keep them low for an `extended period'. `With the unemployment rate at 10 percent, I can't envisage the FED making a move' a dealer said. The STI index rose 51.71 points at 2757.97 points on short covering and bargain hunting. Turnover was 911mil shares with a value of $876mil traded.
Singapore shares rose fueled by short covering and bargain hunting on Thursday as bears take a tentative breather. Index futures added gains when President Obama gave his State of the Union speech, putting an emphasis on creating jobs. `There seems to be lots of short covering' a dealer said. The mood was still fragile, since in recent days, stocks typically sold off in the afternoon after a promising morning start.
Shares of Financial One Corp, Cosco Corp, Sinotel, Straits Asia, Midas, Ezra, Jardine C&C, UOB, SIA, City Developments, NOL, SGX, Keppel Corp, CapitaLand, F&N and Olam rose between 1 and 50 cents. On the balance, shares of Creative Technology, WBL Corp, Hyflux, UOI and Sarin eased between 1 and 8 cents.
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Market close Jan 28. Asian stocks hold onto earlier gains
Asian markets managed to hold on to gains achieved in the morning, against the recent trend where the markets closed weaker after an initial gain. The STI index rose 51.42 points at 2757.68 points on short covering and bargain hunting. Turnover was 1.58bil shares with a value of $1.57bil traded.
Singapore shares rose fuelled by short covering and bargain hunting on Thursday as bears took a tentative breather. Still, the mood remained cautious as some portfolios were affected in the recent correction.
Shares of APB, Jardine C&C, UOB, DBS, SIA, STA Panocean, OCBC, City Dev and Indo Agri, rose between 16 and 60 cents.
On the balance, shares of HsuFuChi, RSH, Creative and Capital Comm eased between 3 and 5 cents.
DJIA: 10236.16 +41.87
Nasdaq Composite: 2221.41 +17.68
The US market managed gains after the Federal Reserve held interest rates steady and hinted it would continue to do so for the foreseeable future (despite dissent from one policymaker, Kansas City Fed President). The closely watched statement also provided a more upbeat guidance on the economy saying that the economy has continued to strengthen since the December meeting and the pace of the slowdown in the labour market is slowing. However, there was no insight on when the Fed plans to loosen its accommodative policy. Apple’s introduction of its new iPad tablet computer at a lower-than-expected starting price of US$499 further lifted the advance.
A less upbeat reading on new home sales and conservative forward earnings guidance did not derail the market advance. New homes sales plunged to a 9-month low, falling 7.6% to a seasonally adjusted annual rate of 342,000 in December, from a revised rate of 370,000 in November. The corporate results of Caterpillar and Boeing both topped analyst expectations, with Caterpillar reporting weaker YoY revenue and earnings whilst Boeing reported quarterly profits (against losses a year ago) and YoY revenue growth. However, both companies issued conservative forward earnings guidance for 2010 that fell short of analyst expectations.
All the major indices ended higher, with the Dow Jones Industrial Average gaining 0.41% and S&P 500 climbed 0.49% to close at 1,097.50. Nasdaq composite advanced 0.80%.
On Thursday, economic readings of durable goods orders and the weekly reading on initial jobless claims will set the market tone. The corporate results of Ford Motor, Amazon.com and Mircosoft will also be released on the same day.
US light crude oil for February delivery fell US$1.04 to settle at US$73.67 a barrel.
In Singapore today:
The Asian markets were mixed on Wednesday after Tuesday’s terrifying selloff on continued deleveraging. In the local bourse, an early rebound fizzled out in late trading with blue chips coming under pressure from Europe, turning earlier gains into losses. The STI index suffered a six-day decline, losing 34.07 points to close at 2706.26. Market breadth was negative and for every stock that rose, 2.87 fell. Turnover was 2.5bil shares with a value of $2.24bil traded.
Gainers for the day included Jardine C&C, HL Asia, Kep Corp, SIA Engg, and SMRT, that rose between 3 and 34 cents. New listing Ryobi Kiso debut at 29 cents but failed to gain traction. Stag selling pushed it to close just at its 26 cents offering.
The market is likely to stage a rebound following Fed Reserve’s guarded upbeat view of the US economy and renewed pledge to keep interest rates near zero. Following the past six-day of massive selloff, the market is likely to draw in bargain-hunters. However, the overall mood of cautious is expected to prevail as the market awaits the US Senate’s vote due today on the Fed Reserve’s chairman’s confirmation as the Fed Chief for a second term.
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Mid Day January 28. Bears took a tentative breather.
Asian markets were broadly higher on a technical rebound boosted by the positive lead on Wall Street. US stocks rebounded led by firmer financials after the Federal Reserve left interest rates unchanged and would keep them low for an `extended period'. `With the unemployment rate at 10 percent, I can't envisage the FED making a move' a dealer said. The STI index rose 51.71 points at 2757.97 points on short covering and bargain hunting. Turnover was 911mil shares with a value of $876mil traded.
Singapore shares rose fueled by short covering and bargain hunting on Thursday as bears take a tentative breather. Index futures added gains when President Obama gave his State of the Union speech, putting an emphasis on creating jobs. `There seems to be lots of short covering' a dealer said. The mood was still fragile, since in recent days, stocks typically sold off in the afternoon after a promising morning start.
Shares of Financial One Corp, Cosco Corp, Sinotel, Straits Asia, Midas, Ezra, Jardine C&C, UOB, SIA, City Developments, NOL, SGX, Keppel Corp, CapitaLand, F&N and Olam rose between 1 and 50 cents. On the balance, shares of Creative Technology, WBL Corp, Hyflux, UOI and Sarin eased between 1 and 8 cents.
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Market close Jan 28. Asian stocks hold onto earlier gains
Asian markets managed to hold on to gains achieved in the morning, against the recent trend where the markets closed weaker after an initial gain. The STI index rose 51.42 points at 2757.68 points on short covering and bargain hunting. Turnover was 1.58bil shares with a value of $1.57bil traded.
Singapore shares rose fuelled by short covering and bargain hunting on Thursday as bears took a tentative breather. Still, the mood remained cautious as some portfolios were affected in the recent correction.
Shares of APB, Jardine C&C, UOB, DBS, SIA, STA Panocean, OCBC, City Dev and Indo Agri, rose between 16 and 60 cents.
On the balance, shares of HsuFuChi, RSH, Creative and Capital Comm eased between 3 and 5 cents.
Labels:
Market Update
Wednesday, January 27, 2010
27 Jan 10 : Back to Market
Was on vacation last week and early this week and kept looking amazingly at the BIG HUGE drop in market ! Back today and could not resist. Bought Rotary at $1.02.. only to see it close at a staggeringly $0.96.. Sigh... bad bad times :)
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Pre-Market Open Commentary for 27 January 2010
DJIA: 10194.29 -2.57
Nasdaq Composite: 2203.73 -7.07
Following an earlier rally that had been sparked off by Apple’s record quarterly results (due after market closed on Monday) and strong reading on consumer confidence, the advance in Wall Street petered out, led by retreat in the financial sector. The consumer confidence index rose higher-than-expected to 55.9 in January, against expectations of 53.5, from 53.6 in December. However, a separate reading on home price index for 20 cities in US fell larger-than-expected with a 0.2% QoQ decline in November, a decline for the first time in seven months, and a fall of 5.3% YoY.
The results of four Dow component companies that were due on Tuesday were mixed. Travelers, DuPont and Jonhson & Johnson (J&J) reported higher quarterly revenue and earnings that topped expectations although J&J’s earnings guidance for FY2010 was conservative. In contrast, Verizon reported profits (excluding one-off layoff charges) which were in line with estimates but revenue was weaker-than-expected and the forward outlook was subdued, with further job cuts in the pipeline. Further, Yahoo reported quarterly profits, reversing losses a year ago, and weaker revenue that topped forecast.
All the major indices ended modestly lower, with the Dow Jones Industrial Average losing 0.03% and S&P 500 lost 0.42% to close at 1,092.17. Nasdaq composite fell 0.32%.
The market is expected to look to the US Federal Reserve meeting and the statement on the economic health and interest rate policy due on Wednesday. The central bankers are widely expected to keep interest rates steady at historic lows near zero and investors are looking for hints from the statement on the timing of interest rate hike and withdrawal of government stimulus dollar. On the same day, economic readings on new home sales and weekly crude oil inventories will be released. Apple will also be unveiling the highly-anticipated new Tablet computer. Only Caterpillar’s earnings result is due tonight.
US light crude oil for February delivery fell US$0.55 to settle at US$74.71 a barrel.
In Singapore today:
Mirroring the turbulence in the regional markets, the local bourse suffered the largest one-day dip in 5 months as market was spooked by PRC’s determination to implement a previously announced directive to lenders to raise their reserve requirements in an effort to curb lending following Chinese data showed that the Chinese banks have extended a breathtaking 1.45 trillion yuan in new loans in the first 19 days of 2010, suggesting that PRC is still struggling to slow down loans. These concerns came in the wake of proposed banking curbs on US banks, which already caused jitters. The Shanghai market fell 2.42%, Hong Kong ended 2.38% lower and Taipei plunged 3.48%. The STI dived 71.38 points, or 2.54%, to 2740.33. For every stock that rose, 14 fell. Turnover was 2.81bil shares with a value of $2.37bil traded.
The bank shares were amongst the biggest losers on the back of China’s move. DBS fell 48 cents to $14.22 and UOB lost 58 cents to $18.06. Property developers with heavy China exposure also came under pressure with Capitaland, losing 18 cents to $3.86.
Expect sentiment to remain fragile and market to be range-bound today as concerns over Beijing’s move to clamp down on rampant lending might choke economic growth linger. Also, the market is looking to the highly-anticipated Federal Reserve statement on the economy for directions.
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Mid Day 27 January. Singapore shares staged technical rebound.
Asian markets were mixed on Wednesday after yesterday's fearsome sell-off on continued deleveraging. Focus will be on the US Federal Reserve policy meeting and President Obama's State of the Union address. Singapore shares staged a technical rebound after yesterday's sharp sell-off. `I can't say there wasn't capitulation but there sure was lots of fear' a trader said. The STI index rebounded 9.17 points at 2749.50 points. For every stock that fell, 2 rose. Turnover was 1.2bil shares with a value of $1bil traded.
The sharp selloff in the last few sessions has begun to draw some buyers back to the market. `Relative to prices 2 weeks ago, it's definitely getting attractive' a trader noted. The market seemed to be fearful, reacting to the often used rational of China's monetary tightening and Obama's constrictive financial reforms. With the bounce, no one was taking chances, `its an opportunity to sell' said a dealer; `the trend has changed'. On the rebound were shares of Midas, Yingli, Financial One, CWT, Cosco Corp, Ezion and Financial One that rose between 1 and 4 cents. New listing Ryobi Kiso debut at 29 cents but failed to gain traction. Stag selling pushed it to close just half cent above its 26 cents offering.
On the balance, shares of APB, Venture Corp, Keppel Land, Wilmar, CapitaLand, SIA, Jardine Strategic, Otto Marine and Hyflux eased between 2 and 17 cents.
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Market Close Jan 27. Singapore shares close lower for fifth day
Despite a positive start to the trading day, Singapore shares drifted lower in the second session after the initial technical rebound after yesterday's sharp sell-off. At closing bell, the STI index closed down 34.07 points at 2706.26 points. Market breadth was emphatically negative, with 144 gainers and 413 decliners. Turnover was 2.5bil shares with a value of $2.24bil traded.
The sharp selloff in the last few sessions has begun to draw some buyers back to the market. `Relative to prices 2 weeks ago, it's definitely getting attractive' a trader noted. The market seemed to be fearful, reacting to the often used rational of China's monetary tightening and Obama's constrictive financial reforms.
With the bounce, no one was taking chances, `its an opportunity to sell' said a dealer; `the trend has changed'.
Gainers for the day included Jardine C&C, HL Asia, Kep Corp, SIA Engg, amd SMRT, that rose between 3 and 34 cents.
New listing Ryobi Kiso debuted at 29 cents but fail e d to gain traction. Stag selling pushed it to close just at its 26 cents offering.
On the balance, shares of STX Panocean, SIA, APB, Venture Corp, City Dev and DBS, eased between 22 and 32 cents.
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Pre-Market Open Commentary for 27 January 2010
DJIA: 10194.29 -2.57
Nasdaq Composite: 2203.73 -7.07
Following an earlier rally that had been sparked off by Apple’s record quarterly results (due after market closed on Monday) and strong reading on consumer confidence, the advance in Wall Street petered out, led by retreat in the financial sector. The consumer confidence index rose higher-than-expected to 55.9 in January, against expectations of 53.5, from 53.6 in December. However, a separate reading on home price index for 20 cities in US fell larger-than-expected with a 0.2% QoQ decline in November, a decline for the first time in seven months, and a fall of 5.3% YoY.
The results of four Dow component companies that were due on Tuesday were mixed. Travelers, DuPont and Jonhson & Johnson (J&J) reported higher quarterly revenue and earnings that topped expectations although J&J’s earnings guidance for FY2010 was conservative. In contrast, Verizon reported profits (excluding one-off layoff charges) which were in line with estimates but revenue was weaker-than-expected and the forward outlook was subdued, with further job cuts in the pipeline. Further, Yahoo reported quarterly profits, reversing losses a year ago, and weaker revenue that topped forecast.
All the major indices ended modestly lower, with the Dow Jones Industrial Average losing 0.03% and S&P 500 lost 0.42% to close at 1,092.17. Nasdaq composite fell 0.32%.
The market is expected to look to the US Federal Reserve meeting and the statement on the economic health and interest rate policy due on Wednesday. The central bankers are widely expected to keep interest rates steady at historic lows near zero and investors are looking for hints from the statement on the timing of interest rate hike and withdrawal of government stimulus dollar. On the same day, economic readings on new home sales and weekly crude oil inventories will be released. Apple will also be unveiling the highly-anticipated new Tablet computer. Only Caterpillar’s earnings result is due tonight.
US light crude oil for February delivery fell US$0.55 to settle at US$74.71 a barrel.
In Singapore today:
Mirroring the turbulence in the regional markets, the local bourse suffered the largest one-day dip in 5 months as market was spooked by PRC’s determination to implement a previously announced directive to lenders to raise their reserve requirements in an effort to curb lending following Chinese data showed that the Chinese banks have extended a breathtaking 1.45 trillion yuan in new loans in the first 19 days of 2010, suggesting that PRC is still struggling to slow down loans. These concerns came in the wake of proposed banking curbs on US banks, which already caused jitters. The Shanghai market fell 2.42%, Hong Kong ended 2.38% lower and Taipei plunged 3.48%. The STI dived 71.38 points, or 2.54%, to 2740.33. For every stock that rose, 14 fell. Turnover was 2.81bil shares with a value of $2.37bil traded.
The bank shares were amongst the biggest losers on the back of China’s move. DBS fell 48 cents to $14.22 and UOB lost 58 cents to $18.06. Property developers with heavy China exposure also came under pressure with Capitaland, losing 18 cents to $3.86.
Expect sentiment to remain fragile and market to be range-bound today as concerns over Beijing’s move to clamp down on rampant lending might choke economic growth linger. Also, the market is looking to the highly-anticipated Federal Reserve statement on the economy for directions.
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Mid Day 27 January. Singapore shares staged technical rebound.
Asian markets were mixed on Wednesday after yesterday's fearsome sell-off on continued deleveraging. Focus will be on the US Federal Reserve policy meeting and President Obama's State of the Union address. Singapore shares staged a technical rebound after yesterday's sharp sell-off. `I can't say there wasn't capitulation but there sure was lots of fear' a trader said. The STI index rebounded 9.17 points at 2749.50 points. For every stock that fell, 2 rose. Turnover was 1.2bil shares with a value of $1bil traded.
The sharp selloff in the last few sessions has begun to draw some buyers back to the market. `Relative to prices 2 weeks ago, it's definitely getting attractive' a trader noted. The market seemed to be fearful, reacting to the often used rational of China's monetary tightening and Obama's constrictive financial reforms. With the bounce, no one was taking chances, `its an opportunity to sell' said a dealer; `the trend has changed'. On the rebound were shares of Midas, Yingli, Financial One, CWT, Cosco Corp, Ezion and Financial One that rose between 1 and 4 cents. New listing Ryobi Kiso debut at 29 cents but failed to gain traction. Stag selling pushed it to close just half cent above its 26 cents offering.
On the balance, shares of APB, Venture Corp, Keppel Land, Wilmar, CapitaLand, SIA, Jardine Strategic, Otto Marine and Hyflux eased between 2 and 17 cents.
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Market Close Jan 27. Singapore shares close lower for fifth day
Despite a positive start to the trading day, Singapore shares drifted lower in the second session after the initial technical rebound after yesterday's sharp sell-off. At closing bell, the STI index closed down 34.07 points at 2706.26 points. Market breadth was emphatically negative, with 144 gainers and 413 decliners. Turnover was 2.5bil shares with a value of $2.24bil traded.
The sharp selloff in the last few sessions has begun to draw some buyers back to the market. `Relative to prices 2 weeks ago, it's definitely getting attractive' a trader noted. The market seemed to be fearful, reacting to the often used rational of China's monetary tightening and Obama's constrictive financial reforms.
With the bounce, no one was taking chances, `its an opportunity to sell' said a dealer; `the trend has changed'.
Gainers for the day included Jardine C&C, HL Asia, Kep Corp, SIA Engg, amd SMRT, that rose between 3 and 34 cents.
New listing Ryobi Kiso debuted at 29 cents but fail e d to gain traction. Stag selling pushed it to close just at its 26 cents offering.
On the balance, shares of STX Panocean, SIA, APB, Venture Corp, City Dev and DBS, eased between 22 and 32 cents.
Labels:
Rotary
26 Jan 10 : A very bad day indeed
Even though I was travelling, I am amazed at the huge drop in the share prices of all my favourite shares ! AMAZING :)
A screen shot from my iPhone when I was travelling and checking share prices :)
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Pre-Market Open Commentary for 26 January 2010
DJIA: 10196.86 +23.88
Nasdaq Composite: 2210.80 +5.51
Wall Street managed slim gains on Monday, led by banks, technology and large industrial sectors, as investors weighed recent concerns on the impact of President Obama’s banking reform plan on banks’ bottomline and the likelihood of Federal Reserve Chairman Ben Bernanke serving a second term. Apple led the technology advance ahead of its quarterly earnings results which was released after market close. The Group reported strong numbers with higher-than-expected sales and earnings due to strong sales of iPhone and Macintosh computers. (Notwithstanding the upbeat results, Apple shares fell in extended-hours trading).
However, a weaker-than-expected housing market report placed a lid on market upside, with sales of existing homes falling to 5.45m unit annual rate in December, against expectations of a fall to 5.9m unit rate, from a rate of 6.54 m units in November. The decline in December reading was expected following a robust November that benefitted from a belief that first-time homebuyer tax credit was about to expire but when the credit was extended and expanded, the momentum dropped.
All the major indices ended modestly higher, with the Dow Jones Industrial Average gaining 0.23% and S&P 500 rose 0.46% to close at 1,096.78. Nasdaq composite surged 0.25%.
The market is expected to refocus on the economy and look to the US Federal Reserve meeting and the statement on the economic health and interest rate policy due on Wednesday. The central bankers are widely expected to keep interest rates steady at historic lows near zero and investors are looking for hints from the statement on the timing of interest rate hike and withdrawal of government stimulus dollar. Before that, the market is expected to take cues from economic readings on consumer confidence index, home price index for 20 areas in US as well as corporate results of Dow component companies including DuPont, Johnson & Johnson, Travelers and Verizon Communications due on Tuesday.
US light crude oil for February delivery rose US$0.72 to settle at US$75.26 a barrel.
In Singapore today:
The local bourse did not manage to snap out of its losing streak as there were lingering concerns over the impact of the US banking reform plans. The market decline, however, was limited to 8 points to close at 2811.71, marking the fourth day of losses. For every stock that rose, 2.3 fell. Turnover was 1.98bil shares with a value of $1.51 bil traded.
Turnover in the trading of China Sports got a boost yesterday from a married trade of 120mil shares at 18 cents. The company said it was proposing a private placement of 120mil new shares at 18 cents and intends to use the proceeds for the setting up of distribution networks and advertising campaigns for FIFA products in China. Its shares slid 1.5 cents at 19.5 cents on 193mil shares. A day after the placement news, shares of Sinotel rebounded 2 cents at 61.5 cents. Dual listing fever had shares of Epure, Z-Obee, Pac Andes and China Fishery rising between half and 5 cents in active dealings.
Expect sentiment to remain subdued and market to be range-bound with a downward bias today as the market awaits more corporate earnings results from US and domestically as well as the highly-anticipated Federal Reserve statement on the economy for directions.
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Mid Day January 26. Frail sentiments and forced selling capping short term advance
US stocks rose, snapping a 3 day decline and rebounded off their worst week since March 2009. Helping sentiments was optimism that Federal Reserve Chairman Bernanke getting re-elected. Worries about Greece's finances eased with a stronger demand for its sovereign bonds, helped by higher yields. It was a mixed day for Asian bourses despite the postive Wall Street lead. The STI index shed 39.08 points at 2772.63 points. Dealers said frail sentiments and forced selling was capping any short term advance for the time being. For every stock that rose, 9 fell. Turnover was 1.46bil shares with a value of $1.1bil traded.
Sentiments stayed fragile as the lack of momentum buying and fear prevailed. The South China Morning Post reported that 6 out of 11 S-chips that sold convertible bonds between 2005 and 2008 are unable to repay their debt. China Milk announced yesterday that it was awaiting clearance from the State Administration of Foreign Exchange (SAFE) for the remittance out of PRC China of approximately US$176.5mil for the full settlement of convertible bond. China Milk shares tumbled 5 cents at 33 cents on 38mil shares. A trader said concerns about the convertible bond and fresh news about tainted milk being found in China weighed on the stock. Shares of Jiutian Chemical tumbled 2 cents at 16 cents after the company said its former Chairman and Chief Executive and a former employee had been convicted and jailed for accepting bribes. This news coupled with a profit warning had sellers rushing for the exit. Chinese property counters continued their downward slide as negative perceptions about the Chinese property market weighed on it. Shares of YingLi, Pan Hong and Yanlord slid between 1 and 6 cents. Precipitating the downward pressure was the Shanghai Composite index's 2 per cent slide on fears of central bank tightening.
Stock that fell were Jardine C&C, UOB, Singapore Land, CapitaLand, SGX, OCBC Bank, UOL, IndoAgric, DBS and SIA that fell between 5 and 60 cents. On the balance, shares of Jardine Matheson, Wilmar and DairyFarm rose between 3 and 24 cents.
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A screen shot from my iPhone when I was travelling and checking share prices :)
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Pre-Market Open Commentary for 26 January 2010
DJIA: 10196.86 +23.88
Nasdaq Composite: 2210.80 +5.51
Wall Street managed slim gains on Monday, led by banks, technology and large industrial sectors, as investors weighed recent concerns on the impact of President Obama’s banking reform plan on banks’ bottomline and the likelihood of Federal Reserve Chairman Ben Bernanke serving a second term. Apple led the technology advance ahead of its quarterly earnings results which was released after market close. The Group reported strong numbers with higher-than-expected sales and earnings due to strong sales of iPhone and Macintosh computers. (Notwithstanding the upbeat results, Apple shares fell in extended-hours trading).
However, a weaker-than-expected housing market report placed a lid on market upside, with sales of existing homes falling to 5.45m unit annual rate in December, against expectations of a fall to 5.9m unit rate, from a rate of 6.54 m units in November. The decline in December reading was expected following a robust November that benefitted from a belief that first-time homebuyer tax credit was about to expire but when the credit was extended and expanded, the momentum dropped.
All the major indices ended modestly higher, with the Dow Jones Industrial Average gaining 0.23% and S&P 500 rose 0.46% to close at 1,096.78. Nasdaq composite surged 0.25%.
The market is expected to refocus on the economy and look to the US Federal Reserve meeting and the statement on the economic health and interest rate policy due on Wednesday. The central bankers are widely expected to keep interest rates steady at historic lows near zero and investors are looking for hints from the statement on the timing of interest rate hike and withdrawal of government stimulus dollar. Before that, the market is expected to take cues from economic readings on consumer confidence index, home price index for 20 areas in US as well as corporate results of Dow component companies including DuPont, Johnson & Johnson, Travelers and Verizon Communications due on Tuesday.
US light crude oil for February delivery rose US$0.72 to settle at US$75.26 a barrel.
In Singapore today:
The local bourse did not manage to snap out of its losing streak as there were lingering concerns over the impact of the US banking reform plans. The market decline, however, was limited to 8 points to close at 2811.71, marking the fourth day of losses. For every stock that rose, 2.3 fell. Turnover was 1.98bil shares with a value of $1.51 bil traded.
Turnover in the trading of China Sports got a boost yesterday from a married trade of 120mil shares at 18 cents. The company said it was proposing a private placement of 120mil new shares at 18 cents and intends to use the proceeds for the setting up of distribution networks and advertising campaigns for FIFA products in China. Its shares slid 1.5 cents at 19.5 cents on 193mil shares. A day after the placement news, shares of Sinotel rebounded 2 cents at 61.5 cents. Dual listing fever had shares of Epure, Z-Obee, Pac Andes and China Fishery rising between half and 5 cents in active dealings.
Expect sentiment to remain subdued and market to be range-bound with a downward bias today as the market awaits more corporate earnings results from US and domestically as well as the highly-anticipated Federal Reserve statement on the economy for directions.
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Mid Day January 26. Frail sentiments and forced selling capping short term advance
US stocks rose, snapping a 3 day decline and rebounded off their worst week since March 2009. Helping sentiments was optimism that Federal Reserve Chairman Bernanke getting re-elected. Worries about Greece's finances eased with a stronger demand for its sovereign bonds, helped by higher yields. It was a mixed day for Asian bourses despite the postive Wall Street lead. The STI index shed 39.08 points at 2772.63 points. Dealers said frail sentiments and forced selling was capping any short term advance for the time being. For every stock that rose, 9 fell. Turnover was 1.46bil shares with a value of $1.1bil traded.
Sentiments stayed fragile as the lack of momentum buying and fear prevailed. The South China Morning Post reported that 6 out of 11 S-chips that sold convertible bonds between 2005 and 2008 are unable to repay their debt. China Milk announced yesterday that it was awaiting clearance from the State Administration of Foreign Exchange (SAFE) for the remittance out of PRC China of approximately US$176.5mil for the full settlement of convertible bond. China Milk shares tumbled 5 cents at 33 cents on 38mil shares. A trader said concerns about the convertible bond and fresh news about tainted milk being found in China weighed on the stock. Shares of Jiutian Chemical tumbled 2 cents at 16 cents after the company said its former Chairman and Chief Executive and a former employee had been convicted and jailed for accepting bribes. This news coupled with a profit warning had sellers rushing for the exit. Chinese property counters continued their downward slide as negative perceptions about the Chinese property market weighed on it. Shares of YingLi, Pan Hong and Yanlord slid between 1 and 6 cents. Precipitating the downward pressure was the Shanghai Composite index's 2 per cent slide on fears of central bank tightening.
Stock that fell were Jardine C&C, UOB, Singapore Land, CapitaLand, SGX, OCBC Bank, UOL, IndoAgric, DBS and SIA that fell between 5 and 60 cents. On the balance, shares of Jardine Matheson, Wilmar and DairyFarm rose between 3 and 24 cents.
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Labels:
Market Update
25 Jan 10 : More Madness in Selling
Pre-Market Open Commentary for 25 January 2010
DJIA: 10172.98 -216.90
Nasdaq Composite: 2205.29 -60.41
The US market slumped for the third straight session last Friday, with the major indices shedding more than 2%, on concerns about White House’s proposal to impose more restrictions on banks, China’s lending curb to rein in economic growth and doubts about whether the Federal Reserve chairman Ben Bernanke will win confirmation for a second term (his first term will end on 31 Jan 2010).
The stronger-than-expected earnings results and improvement in economic data failed to lift the market. General Electric reported YoY weaker revenue and earnings but higher QoQ sales and profits which topped forecasts and McDonald’s reported better-than-expected revenue and earnings. The December jobless rates also rose in 43 states, a marked reversal from November when the majority of the states saw unemployment rates dipping from the prior month.
For the week, all the major indices ended lower. The Dow Jones Industrial Average declined by 4.19% and S&P 500 fell 4.65% to end at 1091.76. Nasdaq composite lost 4.83%.
The week ahead brings the two-day Federal Reserve policy meeting starting Tuesday, a string of economic news including reports on housing, employment, consumer confidence and durable goods orders. The closely-watched report of the week is the first reading on 4Q09 GDP growth, due on Friday. On Monday, reading on sales of existing homes is due. On the corporate front, a host of major companies are due to report their earnings this week, with the results of Apple due on Monday.
For the week, US light crude oil for February delivery fell US$3.46, or 4.44%, to settle at US$74.54 a barrel.
In Singapore today:
The regional markets lost ground last Friday, spooked by the magnitude of damage taken by US banks after President Obama’s move to reform the financial system by slicing the banking business from other riskier activities. The jitters intensified on news that China is moving to curb lending by mainland lenders. The STI index was down 60 points before bargain-hunters scoped up blue chips, leaving the STI down 31.27 points to close at 2819.71. For the week, the STI shed 88.71 points, or 3.05%.
Expect market sentiment to remain cautious and the local bourse to consolidate further taking leads from the plunge in Wall Street last Friday. The local December consumer price index due today could also dictate market sentiment. For the week ahead, the market is expected to look to the US Federal Reserve meeting and the statement on the economic health and interest rate policy due on Wednesday as well as domestic earnings results from blue chips, including Keppel Land, Keppel Corp, SMRT and SIA Engineering.
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Mid day January 25. No respite from Wall Street
No respite from Wall Street as key indice s there shed over 2 percent on Friday for a worst weekly close since March 2009. Worries about China's monetary tightening, corporate earnings and the new regulatory landscape (for banks) proposed by President Obama weighed on the market. The negative US lead had Asian bourses starting the week from a low point. Most markets were off their nadir, helped by bargain hunting. `We are having an oversold bounce now. Perhaps the recent reaction to Obama's plan and monetary tightening has been overdone' a dealer said. This was a view shared by at least 2 foreign brokers who urged clients to use the weakness as an opportunity to accumulate shares. The STI index slid 8.42 points at 2811.29 points but was off its 2789 nadir. For every stock that rose, 2 fell. Turnover was 1.1bil shares with a value of $800mil traded.
Turnover in the trading of China Sports got a boost today from a marry trade of 120mil shares at 18 cents. The company said it was proposing a private placement of 120mil new shares at 18 cents and intends to use the proceeds for the setting up of distrbution networks and advertising campaigns for FIFA products in China. Its shares slid 1.5 cents at 19.5 cents on 174mil shares. A day after the placement news, shares of Sinotel rebounded 1 cent at 60.5 cents. Dual listing fever had shares of Epure, Z-Obee, Pac Andes and China Fishery rising between half and 5 cents in active dealings.
Lower today were shares of Jardine C&C, SIA, Venture Corp, M1, UOB, DBS, Jardine Matheson and OCBC Bank that fell between 3 and 50 cents.
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Market close Jan 25. Stocks close off the day's lows
Optimism reigned over the local bourse despite Wall Street‚s weak Friday close amidst worries about China's monetary tightening, corporate earnings and the new regulatory landscape (for banks) proposed by President Obama weighed on the market. Though Asian bourses started the week lower, bargain hunting helped lift stocks off the day‚s low. The STI index closed just 8 points lower at 2811.71 points but was off its 2789 nadir. For every stock that rose, more than 2 fell. Turnover was 1.98bil shares with a value of $1.5bil traded.
Turnover in the trading of China Sports got a boost today from a married trade of 120mil shares at 18 cents. The company said it was proposing a private placement of 120mil new shares at 18 cents and intends to use the proceeds for the setting up of distribution networks and advertising campaigns for FIFA products in China. Its shares slid 1.5 cents at 19.5 cents on 193mil shares.
A day after the placement news, shares of Sinotel rebounded 2 cents at 61.5 cents. Dual listing fever had shares of Epure, Z-Obee, Pac Andes and China Fishery rising between half and 5 cents in active dealings.
Lower today were shares of Jardine C&C, SIA, Venture Corp, M1, UOB, and DBS, that fell between 8 and 30 cents.
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DJIA: 10172.98 -216.90
Nasdaq Composite: 2205.29 -60.41
The US market slumped for the third straight session last Friday, with the major indices shedding more than 2%, on concerns about White House’s proposal to impose more restrictions on banks, China’s lending curb to rein in economic growth and doubts about whether the Federal Reserve chairman Ben Bernanke will win confirmation for a second term (his first term will end on 31 Jan 2010).
The stronger-than-expected earnings results and improvement in economic data failed to lift the market. General Electric reported YoY weaker revenue and earnings but higher QoQ sales and profits which topped forecasts and McDonald’s reported better-than-expected revenue and earnings. The December jobless rates also rose in 43 states, a marked reversal from November when the majority of the states saw unemployment rates dipping from the prior month.
For the week, all the major indices ended lower. The Dow Jones Industrial Average declined by 4.19% and S&P 500 fell 4.65% to end at 1091.76. Nasdaq composite lost 4.83%.
The week ahead brings the two-day Federal Reserve policy meeting starting Tuesday, a string of economic news including reports on housing, employment, consumer confidence and durable goods orders. The closely-watched report of the week is the first reading on 4Q09 GDP growth, due on Friday. On Monday, reading on sales of existing homes is due. On the corporate front, a host of major companies are due to report their earnings this week, with the results of Apple due on Monday.
For the week, US light crude oil for February delivery fell US$3.46, or 4.44%, to settle at US$74.54 a barrel.
In Singapore today:
The regional markets lost ground last Friday, spooked by the magnitude of damage taken by US banks after President Obama’s move to reform the financial system by slicing the banking business from other riskier activities. The jitters intensified on news that China is moving to curb lending by mainland lenders. The STI index was down 60 points before bargain-hunters scoped up blue chips, leaving the STI down 31.27 points to close at 2819.71. For the week, the STI shed 88.71 points, or 3.05%.
Expect market sentiment to remain cautious and the local bourse to consolidate further taking leads from the plunge in Wall Street last Friday. The local December consumer price index due today could also dictate market sentiment. For the week ahead, the market is expected to look to the US Federal Reserve meeting and the statement on the economic health and interest rate policy due on Wednesday as well as domestic earnings results from blue chips, including Keppel Land, Keppel Corp, SMRT and SIA Engineering.
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Mid day January 25. No respite from Wall Street
No respite from Wall Street as key indice s there shed over 2 percent on Friday for a worst weekly close since March 2009. Worries about China's monetary tightening, corporate earnings and the new regulatory landscape (for banks) proposed by President Obama weighed on the market. The negative US lead had Asian bourses starting the week from a low point. Most markets were off their nadir, helped by bargain hunting. `We are having an oversold bounce now. Perhaps the recent reaction to Obama's plan and monetary tightening has been overdone' a dealer said. This was a view shared by at least 2 foreign brokers who urged clients to use the weakness as an opportunity to accumulate shares. The STI index slid 8.42 points at 2811.29 points but was off its 2789 nadir. For every stock that rose, 2 fell. Turnover was 1.1bil shares with a value of $800mil traded.
Turnover in the trading of China Sports got a boost today from a marry trade of 120mil shares at 18 cents. The company said it was proposing a private placement of 120mil new shares at 18 cents and intends to use the proceeds for the setting up of distrbution networks and advertising campaigns for FIFA products in China. Its shares slid 1.5 cents at 19.5 cents on 174mil shares. A day after the placement news, shares of Sinotel rebounded 1 cent at 60.5 cents. Dual listing fever had shares of Epure, Z-Obee, Pac Andes and China Fishery rising between half and 5 cents in active dealings.
Lower today were shares of Jardine C&C, SIA, Venture Corp, M1, UOB, DBS, Jardine Matheson and OCBC Bank that fell between 3 and 50 cents.
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Market close Jan 25. Stocks close off the day's lows
Optimism reigned over the local bourse despite Wall Street‚s weak Friday close amidst worries about China's monetary tightening, corporate earnings and the new regulatory landscape (for banks) proposed by President Obama weighed on the market. Though Asian bourses started the week lower, bargain hunting helped lift stocks off the day‚s low. The STI index closed just 8 points lower at 2811.71 points but was off its 2789 nadir. For every stock that rose, more than 2 fell. Turnover was 1.98bil shares with a value of $1.5bil traded.
Turnover in the trading of China Sports got a boost today from a married trade of 120mil shares at 18 cents. The company said it was proposing a private placement of 120mil new shares at 18 cents and intends to use the proceeds for the setting up of distribution networks and advertising campaigns for FIFA products in China. Its shares slid 1.5 cents at 19.5 cents on 193mil shares.
A day after the placement news, shares of Sinotel rebounded 2 cents at 61.5 cents. Dual listing fever had shares of Epure, Z-Obee, Pac Andes and China Fishery rising between half and 5 cents in active dealings.
Lower today were shares of Jardine C&C, SIA, Venture Corp, M1, UOB, and DBS, that fell between 8 and 30 cents.
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Labels:
Market Update
22 Jan 10 : More Triple Digit Drop
Pre-Market Open Commentary for 22 January 2010
DJIA: 10389.88 -213.27
Nasdaq Composite: 2265.70 -25.55
The US market tumbled on Thursday after the Obama administration announced a proposal to increase regulation of US’ largest financial firms, including limiting the ability of commercial banks to make high-risk trades and stopping them from investing in hedge funds. The new rules would effectively separate commercial and investment banks, forcing major institutions such as JP Morgan, Goldman Sachs and Bank of America to decide on the direction of their business.
Aggravating the market weakness are lingering concerns about the PRC’s lending practice which hit commodities and commodities shares as well as weak readings on jobless claims and manufacturing activity. The weekly jobless claims for unemployment climbed to 482,000, worse-than-expectations of a fall to 440,000, from 446,000 in the previous week while the regional read on manufacturing activity fell to 15.2 in January, worse-than-expectations of a drop to 18, from 22.5 in December.
On a more positive note, Goldman Sachs, American Express and Google all reported better-than-expected earnings in 4Q09 (although Google’s revenue growth did not impress investors which had higher expectations) but these were overshadowed by too many market concerns.
All the major indices slumped, with the Dow Jones Industrial Average losing 2.01% and S&P 500 lost 1.89% to close at 1,116.48. Nasdaq composite fell 1.12%.
On Friday, the earnings results of General Electric and McDonald’s are due.
US light crude oil for February delivery fell US$1.66 to settle at US$76.08 a barrel.
In Singapore today:
Some of the Asian markets tumbled after China announced yesterday a strong fourth-quarter GDP growth 10.7% to bring the full-year expansion of 8.7% in 2009, igniting fears that the government will roll back stimulus policies to cool the economy. The sell-off was also sparked by talks of a hike in stamp duties on stock trading was in the offing in China. The Taiwan Stock Exchange was down 1.13% and the Hang Seng fell 1.99%. The Shanghai Composite fell on the news but was off its nadir. The STI plunged 42.15 points to 2850.98. For every stock that rose, 3.8 fell. Turnover was 2.27bil shares with a value of $1.96bil traded.
Shares of Sinotel were halted yesterday pending an announcement. Sources said the company was seeking to raise funds via a proposed private placement; indicatively at 8 percent discount to the last done price of 62.5 cents. China Fishery has applied for a listing on the Oslo Bors( a leading exchange for seafood and fishing industries). Its shares rose 2 cents at $1.88 while substantial shareholder PacAndes closed unchanged at 33.5 cents. Z-Obee, another dual listing candidate, rose 5 cents at 34 cents.
Expect market to consolidate further taking cues from the overnight tumble in the US market. Market sentiment is expected to remain fragile in view of the latest GDP data showing the acceleration in China’s economic growth towards end of 2009 has brought about a sharp pickup in inflation, igniting fears that the PRC government will roll back more of its stimulus policies.
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Mid Day January 22. Forced selling and margin selling weighed on market.
US stocks logged in another day of loss as President Obama rattled markets with a proposal to reign in risk taking on Wall Street. The continued strengthening of the US dollars also weighed on equities (especially emerging markets) as some traders deleveraged on their portfolios. The STI index shed 59.01 points at 2791.97 points. For every stock that rose, 8 fell. Turnover was 1.72bil shares with a value of $1.6bil traded.
Forced selling and some margin selling weighed on the market Friday as investors took stock of some of the sharpest selling in recent months. Dealers said `some clients just simply threw in the towel, selling everything lock, stock and barrel'. New listing Tiger Airways made its debut at $1.50 (ipo price) and offered stag sellers an exit when it reached a high of $1.58. Weak sentiments dragged it to a weaker finish at $1.52. Sinotel shares resumed trading today after announcing its plans to place out 28mil new shares at 57.55 cents in a private placement. The stock gapped lower, trading 4 cents down at 58.5 cents. Straits Asia got clock 9 cents at $2.27 after a downgrade by a foreign broker who lowered their price target at $2.00. Genting shares eased 4 cents at $1.19 after a broker started research with a sell and a target of 80 cents.
Lower were shares of retail favourites like YingLi, Ezion, Financial One, BioSensors and Cosco Corp that fell between 1 and 7 cents. Others like UOB, Jardine Matheson, DBS, City Developments,OCBC Bank, Great Eastern Holdings, CapitaLand, Wilmar and Jardine C&C shed between 10 and 80 cents. On a lighter note, shares of M1, Z-oBee, Singtel, Koon, LKH and HL Asia rose between half and 13 cents.
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DJIA: 10389.88 -213.27
Nasdaq Composite: 2265.70 -25.55
The US market tumbled on Thursday after the Obama administration announced a proposal to increase regulation of US’ largest financial firms, including limiting the ability of commercial banks to make high-risk trades and stopping them from investing in hedge funds. The new rules would effectively separate commercial and investment banks, forcing major institutions such as JP Morgan, Goldman Sachs and Bank of America to decide on the direction of their business.
Aggravating the market weakness are lingering concerns about the PRC’s lending practice which hit commodities and commodities shares as well as weak readings on jobless claims and manufacturing activity. The weekly jobless claims for unemployment climbed to 482,000, worse-than-expectations of a fall to 440,000, from 446,000 in the previous week while the regional read on manufacturing activity fell to 15.2 in January, worse-than-expectations of a drop to 18, from 22.5 in December.
On a more positive note, Goldman Sachs, American Express and Google all reported better-than-expected earnings in 4Q09 (although Google’s revenue growth did not impress investors which had higher expectations) but these were overshadowed by too many market concerns.
All the major indices slumped, with the Dow Jones Industrial Average losing 2.01% and S&P 500 lost 1.89% to close at 1,116.48. Nasdaq composite fell 1.12%.
On Friday, the earnings results of General Electric and McDonald’s are due.
US light crude oil for February delivery fell US$1.66 to settle at US$76.08 a barrel.
In Singapore today:
Some of the Asian markets tumbled after China announced yesterday a strong fourth-quarter GDP growth 10.7% to bring the full-year expansion of 8.7% in 2009, igniting fears that the government will roll back stimulus policies to cool the economy. The sell-off was also sparked by talks of a hike in stamp duties on stock trading was in the offing in China. The Taiwan Stock Exchange was down 1.13% and the Hang Seng fell 1.99%. The Shanghai Composite fell on the news but was off its nadir. The STI plunged 42.15 points to 2850.98. For every stock that rose, 3.8 fell. Turnover was 2.27bil shares with a value of $1.96bil traded.
Shares of Sinotel were halted yesterday pending an announcement. Sources said the company was seeking to raise funds via a proposed private placement; indicatively at 8 percent discount to the last done price of 62.5 cents. China Fishery has applied for a listing on the Oslo Bors( a leading exchange for seafood and fishing industries). Its shares rose 2 cents at $1.88 while substantial shareholder PacAndes closed unchanged at 33.5 cents. Z-Obee, another dual listing candidate, rose 5 cents at 34 cents.
Expect market to consolidate further taking cues from the overnight tumble in the US market. Market sentiment is expected to remain fragile in view of the latest GDP data showing the acceleration in China’s economic growth towards end of 2009 has brought about a sharp pickup in inflation, igniting fears that the PRC government will roll back more of its stimulus policies.
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Mid Day January 22. Forced selling and margin selling weighed on market.
US stocks logged in another day of loss as President Obama rattled markets with a proposal to reign in risk taking on Wall Street. The continued strengthening of the US dollars also weighed on equities (especially emerging markets) as some traders deleveraged on their portfolios. The STI index shed 59.01 points at 2791.97 points. For every stock that rose, 8 fell. Turnover was 1.72bil shares with a value of $1.6bil traded.
Forced selling and some margin selling weighed on the market Friday as investors took stock of some of the sharpest selling in recent months. Dealers said `some clients just simply threw in the towel, selling everything lock, stock and barrel'. New listing Tiger Airways made its debut at $1.50 (ipo price) and offered stag sellers an exit when it reached a high of $1.58. Weak sentiments dragged it to a weaker finish at $1.52. Sinotel shares resumed trading today after announcing its plans to place out 28mil new shares at 57.55 cents in a private placement. The stock gapped lower, trading 4 cents down at 58.5 cents. Straits Asia got clock 9 cents at $2.27 after a downgrade by a foreign broker who lowered their price target at $2.00. Genting shares eased 4 cents at $1.19 after a broker started research with a sell and a target of 80 cents.
Lower were shares of retail favourites like YingLi, Ezion, Financial One, BioSensors and Cosco Corp that fell between 1 and 7 cents. Others like UOB, Jardine Matheson, DBS, City Developments,OCBC Bank, Great Eastern Holdings, CapitaLand, Wilmar and Jardine C&C shed between 10 and 80 cents. On a lighter note, shares of M1, Z-oBee, Singtel, Koon, LKH and HL Asia rose between half and 13 cents.
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Labels:
Market Update
21 Jan 10 : Market Update
Pre-Market Open Commentary for 21 January 2010
DJIA: 10603.15 -122.28
Nasdaq Composite: 2291.25 -29.15
The US market tumbled on Wednesday as a stronger greenback and China’s efforts to slow the pace of lending this year to get ahead of inflation pressured commodities and commodity shares. Technology shares also slumped following IBM’s results as investors were not impressed with its revenue, which beat expectations marginally, and positive outlook, relative to higher market expectations.
The results of banks’ earnings further pressured the market decline. Bank of America reported losses which widened to US$5.2bil in 4Q09, from US$2.4bil in 4Q08, due to the bank’s repayment of government bailout fund and bad loans from mortgage and credit cards, translating to loss per share of 60 UScts in 4Q09, worse-than expectations of a loss of 52 UScts. Similarly, Morgan Stanley’s 4Q09 profits of 29UScts missed expectations of 36UScts but on a more upbeat note, Wells Fargo reported a surprise profit of 8UScts a share, compared to expectations of a small loss.
The economic readings were also mixed with the building permits rising to 653,000 unit annual rate in December, better than expectations of 590,000, from 589,000 unit rate in November. However, housing starts fell to 557,000 unit annual rate, lower-than-expectations of 572,000 unit rate, from 580,000 unit rate in November. Inflation remained mild, with the producer price index (PPI) rising 0.2% in December, against expectations of no change in PPI, after climbing 1.8% in November while core-PPI was flat, against expectations of a gain of 0.1%, from a 0.5% increase in the previous month.
All the major indices ended lower, with the Dow Jones Industrial Average losing 1.14% and S&P 500 lost 1.06% to close at 1,138.04. Nasdaq composite fell 1.26%.
Expect the market to take leads from the earnings results of American Express and Google due on Thursday. On the economic front, the weekly jobless claims report and reading on regional manufacturing are also due on the same day.
US light crude oil for February delivery fell US$1.87 to settle at US$77.62 a barrel.
In Singapore today:
Most of the major Asian markets lost ground following news that some Chinese banks had been ordered to cease lending for the rest of January, signaling further tightening of controls on lending growth by the PRC. The move spooked concerns that the economic recovery in the PRC may falter and undermine the fragile global economic recovery. The STI index’s initial lead was cut short by the early weakness in the Shanghai Composite and Hang Seng index. The STI closed 19.79 points down at 2893.13 points. Market breadth was flat at best as caution reigned. Turnover was 2.13bil shares with a value of $1.65bil traded.
M1 produced a decent set of 4Q09 results and was rewarding investors with a gross dividend payout of 7.2 cents. The stocks added 2 cent at $1.99. Capital Commercial Trust's 4Q09 earnings came in above expectations with a dividend per unit (DPU) of 1.88 cents declared. It closed unchanged at $1.18. Midas added 1 cent at $1.08 after 2 brokers issued buy reports with targets of $1.30 and $1.36 respectively, optimistic the company was on course for more contract wins.
Expect market to consolidate further taking cues from the weak overnight close in the US market. Market sentiment is expected to remain subdued in light of lingering economic concerns. The US banks’ results are still showing huge losses from bad loans from mortgage and credit cards, posing concerns on whether the economy can have a sustained strong recovery if consumers are still defaulting on loans. Nearer home, the PRC continues to rein in loans growth, which further raises doubts on the sustainability of the country’s strong growth and its impact on global growth.
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Mid day Jan 21. Sentiment still fragile
Sentiments stayed cautious and fragile after yes terday's tumble in the Chinese and Hong Kong stock markets on fear after the authorities removed stimulus measures. China announced that 4Q GDP grew at a pace of 10.7 percent and this spurred many to believe interest rates will rise sooner.
The sell-off was also sparked by talks a hike in stamp duties on stock trading was in the offing in China. The Shanghai Composite fell on the news but was off its nadir. Not helping sentiments was the Hang Seng Composite index's 0.6 per cent tumble. The STI index shed 18.1 points at 2875.03 points. For every stock that rose, 2 fell. Turnover was 1.12bil shares with a value of $803mil traded.
Unlike the cheery mood of last week, the broader market has been mining fresh weekly lows this week as traders took stock of the aftermath of a nice run-up. `Some indigestion and regurgitation is expected. We'll build a base from lower and rise again' a dealer reckoned.
Trading in shares of Sinotel was halted today pending an anno u ncement. Sources said the company was seeking to raise funds via a proposed private placement; indicatively at 8 percent discount to the last done price of 62.5 cents.
China Fishery has applied for a listing on the Oslo Bors( a leading exchange for seafood and fishing industries). Its shares rose 6 cents at $1.92 while substantial shareholder PacAndes gained 1 cent at 34.5 cents.
Z-0bee; another dual listing candidate, rose 3.5 cents at 32.5 cents. Others like DBS, Jardine Strategic, IndoAgric, M1, Straits Trading and Pac Cent rose between 1 and 24 cents.
On the balance, shares of Jardine Matheson, Jardine C&C, Wilmar, Great Eastern, F&N, UOL, SIA, Noble Group, OCBC bank and UOB fell between 3 and $1.24.
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Market close Jan 21. Sentiment worsened in the second session
Sentiment worsened in the se cond session, partly on speculation of a possible hike in stamp duties to be imposed on stock trading in China. Yesterday, reports of the government tightening credit also had a dampening impact on the market. Not helping sentiments was the Hang Seng Composite index's 2 per cent tumble. The STI index lost 42.15 points at 2850.98 points by the close of trading. For every stock that rose, nearly 4 fell. Turnover was 2.27bil shares with a value of $1.96bil traded.
Unlike the cheery mood of last week, the broader market has been mining fresh weekly lows this week as traders took stock of the aftermath of a nice run-up. Shares of Sinotel was halted today pending an announcement. Sources said the company was seeking to raise funds via a proposed private placement; indicatively at 8 percent discount to the last done price of 62.5 cents.
China Fishery has applied for a listing on the Oslo Bors (a leading exchange for seafood and fishing industries). Its shares rose 2 cents at $1.88 while substantial shareholder PacAndes closed unchanged at 33.5 cents. Z-Obee; another dual listing candidate, rose 5 cents at 34 cents.
Others like DBS, Jardine Strategic, Straits Trading and DBS rose between 4 and 20 cents.
On the balance, shares of Jardine Matheson, Jardine C&C, Wilmar, Great Eastern, and Straits Asia fell between 14 cents and $1.28.
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DJIA: 10603.15 -122.28
Nasdaq Composite: 2291.25 -29.15
The US market tumbled on Wednesday as a stronger greenback and China’s efforts to slow the pace of lending this year to get ahead of inflation pressured commodities and commodity shares. Technology shares also slumped following IBM’s results as investors were not impressed with its revenue, which beat expectations marginally, and positive outlook, relative to higher market expectations.
The results of banks’ earnings further pressured the market decline. Bank of America reported losses which widened to US$5.2bil in 4Q09, from US$2.4bil in 4Q08, due to the bank’s repayment of government bailout fund and bad loans from mortgage and credit cards, translating to loss per share of 60 UScts in 4Q09, worse-than expectations of a loss of 52 UScts. Similarly, Morgan Stanley’s 4Q09 profits of 29UScts missed expectations of 36UScts but on a more upbeat note, Wells Fargo reported a surprise profit of 8UScts a share, compared to expectations of a small loss.
The economic readings were also mixed with the building permits rising to 653,000 unit annual rate in December, better than expectations of 590,000, from 589,000 unit rate in November. However, housing starts fell to 557,000 unit annual rate, lower-than-expectations of 572,000 unit rate, from 580,000 unit rate in November. Inflation remained mild, with the producer price index (PPI) rising 0.2% in December, against expectations of no change in PPI, after climbing 1.8% in November while core-PPI was flat, against expectations of a gain of 0.1%, from a 0.5% increase in the previous month.
All the major indices ended lower, with the Dow Jones Industrial Average losing 1.14% and S&P 500 lost 1.06% to close at 1,138.04. Nasdaq composite fell 1.26%.
Expect the market to take leads from the earnings results of American Express and Google due on Thursday. On the economic front, the weekly jobless claims report and reading on regional manufacturing are also due on the same day.
US light crude oil for February delivery fell US$1.87 to settle at US$77.62 a barrel.
In Singapore today:
Most of the major Asian markets lost ground following news that some Chinese banks had been ordered to cease lending for the rest of January, signaling further tightening of controls on lending growth by the PRC. The move spooked concerns that the economic recovery in the PRC may falter and undermine the fragile global economic recovery. The STI index’s initial lead was cut short by the early weakness in the Shanghai Composite and Hang Seng index. The STI closed 19.79 points down at 2893.13 points. Market breadth was flat at best as caution reigned. Turnover was 2.13bil shares with a value of $1.65bil traded.
M1 produced a decent set of 4Q09 results and was rewarding investors with a gross dividend payout of 7.2 cents. The stocks added 2 cent at $1.99. Capital Commercial Trust's 4Q09 earnings came in above expectations with a dividend per unit (DPU) of 1.88 cents declared. It closed unchanged at $1.18. Midas added 1 cent at $1.08 after 2 brokers issued buy reports with targets of $1.30 and $1.36 respectively, optimistic the company was on course for more contract wins.
Expect market to consolidate further taking cues from the weak overnight close in the US market. Market sentiment is expected to remain subdued in light of lingering economic concerns. The US banks’ results are still showing huge losses from bad loans from mortgage and credit cards, posing concerns on whether the economy can have a sustained strong recovery if consumers are still defaulting on loans. Nearer home, the PRC continues to rein in loans growth, which further raises doubts on the sustainability of the country’s strong growth and its impact on global growth.
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Mid day Jan 21. Sentiment still fragile
Sentiments stayed cautious and fragile after yes terday's tumble in the Chinese and Hong Kong stock markets on fear after the authorities removed stimulus measures. China announced that 4Q GDP grew at a pace of 10.7 percent and this spurred many to believe interest rates will rise sooner.
The sell-off was also sparked by talks a hike in stamp duties on stock trading was in the offing in China. The Shanghai Composite fell on the news but was off its nadir. Not helping sentiments was the Hang Seng Composite index's 0.6 per cent tumble. The STI index shed 18.1 points at 2875.03 points. For every stock that rose, 2 fell. Turnover was 1.12bil shares with a value of $803mil traded.
Unlike the cheery mood of last week, the broader market has been mining fresh weekly lows this week as traders took stock of the aftermath of a nice run-up. `Some indigestion and regurgitation is expected. We'll build a base from lower and rise again' a dealer reckoned.
Trading in shares of Sinotel was halted today pending an anno u ncement. Sources said the company was seeking to raise funds via a proposed private placement; indicatively at 8 percent discount to the last done price of 62.5 cents.
China Fishery has applied for a listing on the Oslo Bors( a leading exchange for seafood and fishing industries). Its shares rose 6 cents at $1.92 while substantial shareholder PacAndes gained 1 cent at 34.5 cents.
Z-0bee; another dual listing candidate, rose 3.5 cents at 32.5 cents. Others like DBS, Jardine Strategic, IndoAgric, M1, Straits Trading and Pac Cent rose between 1 and 24 cents.
On the balance, shares of Jardine Matheson, Jardine C&C, Wilmar, Great Eastern, F&N, UOL, SIA, Noble Group, OCBC bank and UOB fell between 3 and $1.24.
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Market close Jan 21. Sentiment worsened in the second session
Sentiment worsened in the se cond session, partly on speculation of a possible hike in stamp duties to be imposed on stock trading in China. Yesterday, reports of the government tightening credit also had a dampening impact on the market. Not helping sentiments was the Hang Seng Composite index's 2 per cent tumble. The STI index lost 42.15 points at 2850.98 points by the close of trading. For every stock that rose, nearly 4 fell. Turnover was 2.27bil shares with a value of $1.96bil traded.
Unlike the cheery mood of last week, the broader market has been mining fresh weekly lows this week as traders took stock of the aftermath of a nice run-up. Shares of Sinotel was halted today pending an announcement. Sources said the company was seeking to raise funds via a proposed private placement; indicatively at 8 percent discount to the last done price of 62.5 cents.
China Fishery has applied for a listing on the Oslo Bors (a leading exchange for seafood and fishing industries). Its shares rose 2 cents at $1.88 while substantial shareholder PacAndes closed unchanged at 33.5 cents. Z-Obee; another dual listing candidate, rose 5 cents at 34 cents.
Others like DBS, Jardine Strategic, Straits Trading and DBS rose between 4 and 20 cents.
On the balance, shares of Jardine Matheson, Jardine C&C, Wilmar, Great Eastern, and Straits Asia fell between 14 cents and $1.28.
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Labels:
Market Update
Wednesday, January 20, 2010
20 Jan 10 : Kicked out of Straits Asia
Another loss :(
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Pre-Market Open Commentary for 20 January 2010
DJIA: 10725.43 +115.78
Nasdaq Composite: 2320.40 +32.41
The US market rallied on Tuesday with IBM leading a technology charge ahead of its quarterly earnings results, which was released after market close and was higher-than-expected for both sales and earnings. (But notwithstanding IBM’s better-than-expected quarterly revenue and earnings, the share price fell in extended-hours trading as the market was still unimpressed with the results).
Citigroup’s quarterly loss of 33 UScents per share was in line with expectations but did not impress the market either. The market advance was further fuelled by the healthcare and consumer products sectors; the former rose in anticipation that a Republican election to the Massachusetts US Senate seat could stall health care reform by ending the Democrats’ filibuster-proof status while the successful Kraft-Cadbury 11.9 bil pounds takeover offer after four months of haggling lifted consumer products.
All the major indices ended higher, with the Dow Jones Industrial Average gaining 1.09% and S&P 500 rose 1.25% to close at 1,150.23. Nasdaq composite surged 1.42%.
Market sentiment is expected to take leads from corporate earnings results of Bank of America, Wells Fargo, eBay and Morgan Stanley due on Wednesday. On the economic front, readings due include December reading on housing starts and building permits as well as producer price index.
US light crude oil for February delivery rose US$1.02 to settle at US$79.02 a barrel.
In Singapore today:
The Singapore market drifted sideways on Tuesday as investors awaited for key earnings reports from the US and braced for more dampening measures from the PRC, which moved yesterday to tighten liquidity further by auctioning 24 bil yuan of one-year bills at higher-than-expected yield of 1.9264% to attract buyers. The STI index closed almost unchanged, rising 0.90 points to 2912.92. For every stock that rose, 1.36 fell. Turnover was 1.89bil shares with a value of $1.57bil traded.
Shares of Hongguo surged 11 cents to 43 cents after Info Giant Investments limited (the offeror) made a voluntary conditional offer to buy all shares outstanding at 0.439 cents per share in cash. The offerors are current office bearers of Hongguo and have expressed their intent to privatise and delist the company with this offer. CapitaLand rose 8 cents at $4.36 after announcing the acquisition of the 100 per cent stake in Orient Overseas Developments Limited for a cash consideration of US$2.2bil. The acquisition will double CapitaLand's China property portfolio to 2.8mil square meter.
Notwithstanding the relatively strong overnight advance in Wall Street, expect market to consolidate and caution to prevail in the local bourse in light of share price weakness of after-market trades of US companies (eg IBM) which reported better-than-expected earnings in 4Q as well as potentially more dampening measures from the PRC.
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Mid day January 20. STI remained relatively flat
A rally on Wall Street on encouraging corporate earnings lifted Asian bourses Wednesday as traders bidded up issues that tumbled in recent sessions. Eyes will be on the Massachusetts' Senated election later today where a Republican win could extend a US gain, according to pundits. The STI index's intial lead was cut short by the early weakness in the Shanghai Composite and Hang Seng index. The STI closed 4.04 points down at 2908.88 points. Market breadth was flat at best as caution reigned . Turnover was 1.2bil shares with a value of $841mil traded.
M1 produced a decent set of 4Q09 results and was rewarding investors with a gross dividend payout of 7.2 cents. The stocks added 1 cent at $1.98. Capital Commercial Trust's 4Q09 earnings came in above expectations with a dividend per unit ( dpu) of 1.88 cents declared. It rose 2 cents at $1.20. Midas added 3 cent at $1.10 after 2 brokers issued buy reports with targets of $1.30 and $1.36 respectively; optimistic the company was on course for more contract wins. Biosensors said it received the CE mark approval for a new version of its Biomatrix drug eluting stent system. The stock was unchanged at 88 cents. Rotational play brought shares of CWT, LKH, Sinomen, Z-obee Epure and United Envirotech between half and 10 cents higher.
On the balance, shares of Jardine C&C, UOB, WBL Corp, Sembcorp, Ezra and SIA eased between 2 and 24 cents.
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Pre-Market Open Commentary for 20 January 2010
DJIA: 10725.43 +115.78
Nasdaq Composite: 2320.40 +32.41
The US market rallied on Tuesday with IBM leading a technology charge ahead of its quarterly earnings results, which was released after market close and was higher-than-expected for both sales and earnings. (But notwithstanding IBM’s better-than-expected quarterly revenue and earnings, the share price fell in extended-hours trading as the market was still unimpressed with the results).
Citigroup’s quarterly loss of 33 UScents per share was in line with expectations but did not impress the market either. The market advance was further fuelled by the healthcare and consumer products sectors; the former rose in anticipation that a Republican election to the Massachusetts US Senate seat could stall health care reform by ending the Democrats’ filibuster-proof status while the successful Kraft-Cadbury 11.9 bil pounds takeover offer after four months of haggling lifted consumer products.
All the major indices ended higher, with the Dow Jones Industrial Average gaining 1.09% and S&P 500 rose 1.25% to close at 1,150.23. Nasdaq composite surged 1.42%.
Market sentiment is expected to take leads from corporate earnings results of Bank of America, Wells Fargo, eBay and Morgan Stanley due on Wednesday. On the economic front, readings due include December reading on housing starts and building permits as well as producer price index.
US light crude oil for February delivery rose US$1.02 to settle at US$79.02 a barrel.
In Singapore today:
The Singapore market drifted sideways on Tuesday as investors awaited for key earnings reports from the US and braced for more dampening measures from the PRC, which moved yesterday to tighten liquidity further by auctioning 24 bil yuan of one-year bills at higher-than-expected yield of 1.9264% to attract buyers. The STI index closed almost unchanged, rising 0.90 points to 2912.92. For every stock that rose, 1.36 fell. Turnover was 1.89bil shares with a value of $1.57bil traded.
Shares of Hongguo surged 11 cents to 43 cents after Info Giant Investments limited (the offeror) made a voluntary conditional offer to buy all shares outstanding at 0.439 cents per share in cash. The offerors are current office bearers of Hongguo and have expressed their intent to privatise and delist the company with this offer. CapitaLand rose 8 cents at $4.36 after announcing the acquisition of the 100 per cent stake in Orient Overseas Developments Limited for a cash consideration of US$2.2bil. The acquisition will double CapitaLand's China property portfolio to 2.8mil square meter.
Notwithstanding the relatively strong overnight advance in Wall Street, expect market to consolidate and caution to prevail in the local bourse in light of share price weakness of after-market trades of US companies (eg IBM) which reported better-than-expected earnings in 4Q as well as potentially more dampening measures from the PRC.
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Mid day January 20. STI remained relatively flat
A rally on Wall Street on encouraging corporate earnings lifted Asian bourses Wednesday as traders bidded up issues that tumbled in recent sessions. Eyes will be on the Massachusetts' Senated election later today where a Republican win could extend a US gain, according to pundits. The STI index's intial lead was cut short by the early weakness in the Shanghai Composite and Hang Seng index. The STI closed 4.04 points down at 2908.88 points. Market breadth was flat at best as caution reigned . Turnover was 1.2bil shares with a value of $841mil traded.
M1 produced a decent set of 4Q09 results and was rewarding investors with a gross dividend payout of 7.2 cents. The stocks added 1 cent at $1.98. Capital Commercial Trust's 4Q09 earnings came in above expectations with a dividend per unit ( dpu) of 1.88 cents declared. It rose 2 cents at $1.20. Midas added 3 cent at $1.10 after 2 brokers issued buy reports with targets of $1.30 and $1.36 respectively; optimistic the company was on course for more contract wins. Biosensors said it received the CE mark approval for a new version of its Biomatrix drug eluting stent system. The stock was unchanged at 88 cents. Rotational play brought shares of CWT, LKH, Sinomen, Z-obee Epure and United Envirotech between half and 10 cents higher.
On the balance, shares of Jardine C&C, UOB, WBL Corp, Sembcorp, Ezra and SIA eased between 2 and 24 cents.
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Labels:
Straits Asia
Tuesday, January 19, 2010
19 Jan 10 : Awaiting USA Markets
Pre-Market Open Commentary for 19 January 2010
The US market was closed on Monday for Martin Luther King Jr, Day.
Expect market sentiment for the rest of the week to take leads from a spate of fourth quarter results out this week from corporate giants. In the earlier part of the week, results of Citigroup and IBM are expected on Tuesday while those of Bank of America, Wells Fargo, eBay and Morgan Stanley are due on Wednesday. There will be no market-moving economic news on Tuesday but from Wednesday onwards, economic readings due include December reading on housing starts and building permits, producer price index, jobless claims data and manufacturing activities.
In Singapore today:
The local regional markets started the week between 0.2% and 2% down led by the triple-digit losses on Wall Street last Friday ensuing from weak earnings from JP Morgan, which put some negative connotations about earnings expectations of the other US banks. On the local bourse, trading stayed in a tight band range on Monday with the STI ending 3.60 points up at 2918.99 points. For every stock that gained, 1.6 fell. Turnover was 1.7 bil shares with a value of $1.3 bil traded.
Shares of Financial One Corp bounced 0.5 cents at 61 cents as traders viewed its dip as a chance to buy. The company announced last week plans to list a subsidiary in Taiwan and was seeking strategic investors. Sinotel rose declined 0.5 cents at 64 cents on talks that the company could be seeking to do a private placement not lower than 60 cents. Shares of Biosensors rose 5.5 cents at 88.5 cents after its Biomatrix drug eluting stent system was given the approval for reimbursement in France. Ezion got a lift from a buy report and rose 1 cent at 83.5 cents.
Expect caution to prevail and the local bourse to trade in a tight band today in the absence of leads from the US market which was closed for Martin Luther King Jr, Day on Monday. Market is expected to focus on corporate earnings for the week ahead with results from M1, Mapletree Logistics, CapitaMall Trust and Ascott Reit due this week. Earnings results trickling from US will also have a knock-on effect on the market sentiment in the local bourse.
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Mid day January 19. Modest advance but facing increasing headwinds
Singapore shares made a modest advance on situational issues but was facing increasing headwinds as the bourse is probably in a consolidation mode.
`Expect more sideway tradings in the interim before we head higher' a dealer said. The STI index eased 0.57 points at 2911.45 points. For every stock that rose, 1.3 fell. Turnover was 989mil shares with a value of $809m traded.
Shares of Hongguo surged 11 cents to 43 cents after Info Giant Investments limited (the offeror) made a voluntary conditional offer to buy all shares outstanding at 0.439 cents per share in cash. The offerors are current office bearers of Hongguo and have expressed their intent to privatise and delist the company with this offer. CapitaLand rose 11 cents at $4.39 after announcing the acquisition of the 100 per cent stake in Orient Overseas Developments Limited for a cash consideration of US$2.2bil. The acquisition will double CapitaLand's China property portfolio to 2.8mil square meter.
Transcu shares rose 2 cents at 13.5 cents after it said it has entered into an exclusive agreement with Japan's Advanced Material Technologies Co. Ltd to be the exclusive distributor for AMT's product.
Cosco Corp rose 6 cents at $1.37 on rumours of a sizeable contract win.
It was probably a case of buy the rumour sell the news for SGX whose shares slipped 7 cents at $8.29. The company just announced its 2Q10 results that was nothing spectacular but retained most buy calls from analysts. One local broker had a sell call with a target of $7.60. Other stocks that fell were City Developments, Jardine Matheson, Keppel Corp, Wing Tai, Yanlord, NOL, UIC, SC Global and Ho Been that eased between 1.5 and 12 cents.
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Market close Jan 19. Singapore shares traded within a narrow range
Singapore shares traded within a narrow range as stocks consolidated amidst some uncertainty over the general market direction. The STI index closed almost unchanged, up 0.90 points at 2912.92 points. For every stock that rose, 1.3 fell. Turnover was 1.9bil shares with a value of $1.57bil traded.
Shares of Hongguo surged 11 cents to 43 cents after Info Giant Investments limited (the offeror) made a voluntary conditional offer to buy all shares outstanding at 0.439 cents per share in cash. The offerors are current office bearers of Hongguo and have expressed their intent to privatise and delist the company with this offer.
CapitaLand rose 8 cents at $4.36 after announcing the acquisition of the 100 per cent stake in Orient Overseas Developments Limited for a cash consideration of US$2.2bil. The acquisition will double CapitaLand's China property portfolio to 2.8mil square meters.
Transcu shares rose 2 cents at 13.5 cents after it said it has entered into an exclusive agreement with Japan's Advanced Material Technologies Co. Ltd to be the exclusive distributor for AMT's product. Cosco Corp rose 5 cents at $1.36 on rumours of a sizeable c ontract win.
It was probably a case of buy the rumour sell the news for SGX whose shares slipped 9 cents at $8.27. The company just announced its 2Q10 results that was nothing spectacular but retained most buy calls from analysts. One local broker had a sell call with a target of $7.60. Other stocks that fell were City Development, Great Eastern, OCBC, Omega, SIA Engg and UIC that eased between 5 and 8 cents.
The US market was closed on Monday for Martin Luther King Jr, Day.
Expect market sentiment for the rest of the week to take leads from a spate of fourth quarter results out this week from corporate giants. In the earlier part of the week, results of Citigroup and IBM are expected on Tuesday while those of Bank of America, Wells Fargo, eBay and Morgan Stanley are due on Wednesday. There will be no market-moving economic news on Tuesday but from Wednesday onwards, economic readings due include December reading on housing starts and building permits, producer price index, jobless claims data and manufacturing activities.
In Singapore today:
The local regional markets started the week between 0.2% and 2% down led by the triple-digit losses on Wall Street last Friday ensuing from weak earnings from JP Morgan, which put some negative connotations about earnings expectations of the other US banks. On the local bourse, trading stayed in a tight band range on Monday with the STI ending 3.60 points up at 2918.99 points. For every stock that gained, 1.6 fell. Turnover was 1.7 bil shares with a value of $1.3 bil traded.
Shares of Financial One Corp bounced 0.5 cents at 61 cents as traders viewed its dip as a chance to buy. The company announced last week plans to list a subsidiary in Taiwan and was seeking strategic investors. Sinotel rose declined 0.5 cents at 64 cents on talks that the company could be seeking to do a private placement not lower than 60 cents. Shares of Biosensors rose 5.5 cents at 88.5 cents after its Biomatrix drug eluting stent system was given the approval for reimbursement in France. Ezion got a lift from a buy report and rose 1 cent at 83.5 cents.
Expect caution to prevail and the local bourse to trade in a tight band today in the absence of leads from the US market which was closed for Martin Luther King Jr, Day on Monday. Market is expected to focus on corporate earnings for the week ahead with results from M1, Mapletree Logistics, CapitaMall Trust and Ascott Reit due this week. Earnings results trickling from US will also have a knock-on effect on the market sentiment in the local bourse.
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Mid day January 19. Modest advance but facing increasing headwinds
Singapore shares made a modest advance on situational issues but was facing increasing headwinds as the bourse is probably in a consolidation mode.
`Expect more sideway tradings in the interim before we head higher' a dealer said. The STI index eased 0.57 points at 2911.45 points. For every stock that rose, 1.3 fell. Turnover was 989mil shares with a value of $809m traded.
Shares of Hongguo surged 11 cents to 43 cents after Info Giant Investments limited (the offeror) made a voluntary conditional offer to buy all shares outstanding at 0.439 cents per share in cash. The offerors are current office bearers of Hongguo and have expressed their intent to privatise and delist the company with this offer. CapitaLand rose 11 cents at $4.39 after announcing the acquisition of the 100 per cent stake in Orient Overseas Developments Limited for a cash consideration of US$2.2bil. The acquisition will double CapitaLand's China property portfolio to 2.8mil square meter.
Transcu shares rose 2 cents at 13.5 cents after it said it has entered into an exclusive agreement with Japan's Advanced Material Technologies Co. Ltd to be the exclusive distributor for AMT's product.
Cosco Corp rose 6 cents at $1.37 on rumours of a sizeable contract win.
It was probably a case of buy the rumour sell the news for SGX whose shares slipped 7 cents at $8.29. The company just announced its 2Q10 results that was nothing spectacular but retained most buy calls from analysts. One local broker had a sell call with a target of $7.60. Other stocks that fell were City Developments, Jardine Matheson, Keppel Corp, Wing Tai, Yanlord, NOL, UIC, SC Global and Ho Been that eased between 1.5 and 12 cents.
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Market close Jan 19. Singapore shares traded within a narrow range
Singapore shares traded within a narrow range as stocks consolidated amidst some uncertainty over the general market direction. The STI index closed almost unchanged, up 0.90 points at 2912.92 points. For every stock that rose, 1.3 fell. Turnover was 1.9bil shares with a value of $1.57bil traded.
Shares of Hongguo surged 11 cents to 43 cents after Info Giant Investments limited (the offeror) made a voluntary conditional offer to buy all shares outstanding at 0.439 cents per share in cash. The offerors are current office bearers of Hongguo and have expressed their intent to privatise and delist the company with this offer.
CapitaLand rose 8 cents at $4.36 after announcing the acquisition of the 100 per cent stake in Orient Overseas Developments Limited for a cash consideration of US$2.2bil. The acquisition will double CapitaLand's China property portfolio to 2.8mil square meters.
Transcu shares rose 2 cents at 13.5 cents after it said it has entered into an exclusive agreement with Japan's Advanced Material Technologies Co. Ltd to be the exclusive distributor for AMT's product. Cosco Corp rose 5 cents at $1.36 on rumours of a sizeable c ontract win.
It was probably a case of buy the rumour sell the news for SGX whose shares slipped 9 cents at $8.27. The company just announced its 2Q10 results that was nothing spectacular but retained most buy calls from analysts. One local broker had a sell call with a target of $7.60. Other stocks that fell were City Development, Great Eastern, OCBC, Omega, SIA Engg and UIC that eased between 5 and 8 cents.
Labels:
Market Update
False Break better than No Break
Saw this on the internet forum today:
Do you agree ? :)
On stocks that have consolidated for a period of time, he said that one has to participate even though the stock can have a false break peak. The problem is no one person can predict when is the true break peak, and hence, has to take the risk of cutting loss. But the key is to catch the run and one run is enough to cover your losses. "Lose small, win big"
Do you agree ? :)
Labels:
Trading Advice
EU countries : Can they be stable and grow at the same time
Will the European Monetary Union countries be able to return to the budgetary discipline of the Stability and Growth Pact? Can they bring their future national finances into line with the treaty limits on deficits and debt? They cannot and will not.
The 1997 Stability and Growth pact was based on the Maastricht Treaty and was the operational precursor to the euro launch in 1999. It will now join the Kellogg-Briand Pact, the Locarno Treaties and other international agreements that have attempted to control the natural inclinations of governments and failed. But unlike those anti-war and disarmament treaties from the 1920s, whose goals disappeared along with the treaties in the conflicts and wars that followed, the Stability and Growth Pact will disappear but its chief goal and the great achievement of European unity, the euro, will live on.
The pact was a German sponsored addition to the Maastricht Treaty that set up the euro. It set a yearly deficit limit of 3% percent of GDP and an overall national debt limit of 60% of GDP. Its purpose was to enforce the fiscal discipline of the convergence criteria which set monetary and financial parameters for joining the euro.
The pact was designed to rein in the perennial deficit spenders of Southern Europe. It was to be reassurance to the Germans who were giving up the stability of the Deutsche Mark for the euro and an image makeover for the Italians, Greeks and other profligates; it was a complete success. For a few years the spenders pretended that the euro had disciplined their public finances as it eliminated the recourse to competitive currency devaluation. The pact established the credibility of the ECB as a worthy inheritor of the sound money German Bundesbank and gave the euro a strong beginning and a decade of strong valuation.
In short order the euro was established, accepted and valued by the world's financial markets. It was the most successful introduction of a currency and central bank in history. The euro is a competitor to the dollar and yen in world markets and a growing competitor in reserve status to the dollar. The ECB is the world's second central bank and holder of the best inflation reputation. All of these are at least partially due to the rigorous criteria of the Stability and Growth Pact.
But the pact is another victim of the financial crisis and recession. Every member of the EMU has a 2009 and 2010 budget deficit above the 3% percent limit. But that has not stopped the lectures from the central euro duo of Germany and France.
"No government, no state can expect any special treatment". "Some governments, one in particular, has very difficult decisions to take". Jean Claude Trichet, the president of the European Central Bank said in his stern in his warning to the Greek Government. German Chancellor Angela Merkel noted that Greece's fiscal woes could hurt the euro.
The budget woes in Greece, Portugal, Spain and Ireland are not the only consideration weighing on the euro. European economic growth is moribund. The German Finance Minister expects GDP to be flat in the fourth quarter after 0.4% expansion in the second quarter and 0.7% in the third. EMU growth was 0.4% in the third quarter and is not expected to be very different in the fourth. ECB Interest rate policy is stationary and there will not be a fast withdrawal of the crisis liquidity from European money markets. In all of these factors, except perhaps GDP growth, the euro is no worse off than its two major competitors the dollar and the yen; only the United States is likely to have a stronger recovery in the fourth quarter.
German and French government deficits are moderate compared to those of Greece, Portugal, Ireland and Spain. But the ability of the two central member s of the EMU to enforce the 3% deficit limit or even to lead by example is very limited.
This is not the first breech of the deficit limit by Germany or France. The German deficit was over the limit for four consecutive years in the first half of the last decade. And the French ignored the limit when it suited their interests. The German deficit in 2009 was 3.2% and will likely be over limit again in 2010. This is of course nowhere near the level of Greece whose 2009 deficit was 12.7% of GDP.
But despite brave talk by government and ECB officials, it is the Greek Government that holds the whip hand. It is the Athenian politicians who must cut their budget and answer to their voters. If the Greek government is unable or unwilling to meet the demands of Germany and France, what then? If the Greek voters remove the current government for doing what the Northern Europeans want, what happens? Will Greece default on its sovereign debt? No. Will they leave or be forced out of the euro? No. Will the Greek Government make some very public efforts to bring down their deficit levels? Yes. Will the Greeks be able to stabilize their deficit under the 3% limit anytime in the next generation? Very problematical. What exactly can the French and Germans do if the Greeks, Italians and Portuguese do not cooperate?
The truth is that in a democratic system foreign governments have little recourse short of war to enforce international agreements on unwilling countries that can bear the consequences of their actions.
So what will be the result of this EMU deficit and debt crisis?
The euro will not be abandoned; sovereign debt will not be repudiated; profligate government will not suddenly develop budget discipline. But the Stability and Growth Pact, specifically the 3% deficit and 60% debt limits, will fade into history; it has served its purpose well. Publicly government and ECB officials will continue to praise the pact and its rules and demand adherence. Privately they will admit the game is up.
The most successful central bank of the past decade will now fall to earth. The ECB has been able to make disciplined monetary policy because the Stability and Growth Pact has limited the inflationary tendencies of the EMU governments. That restriction is now gone; the euro can only suffer in consequence.
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The 1997 Stability and Growth pact was based on the Maastricht Treaty and was the operational precursor to the euro launch in 1999. It will now join the Kellogg-Briand Pact, the Locarno Treaties and other international agreements that have attempted to control the natural inclinations of governments and failed. But unlike those anti-war and disarmament treaties from the 1920s, whose goals disappeared along with the treaties in the conflicts and wars that followed, the Stability and Growth Pact will disappear but its chief goal and the great achievement of European unity, the euro, will live on.
The pact was a German sponsored addition to the Maastricht Treaty that set up the euro. It set a yearly deficit limit of 3% percent of GDP and an overall national debt limit of 60% of GDP. Its purpose was to enforce the fiscal discipline of the convergence criteria which set monetary and financial parameters for joining the euro.
The pact was designed to rein in the perennial deficit spenders of Southern Europe. It was to be reassurance to the Germans who were giving up the stability of the Deutsche Mark for the euro and an image makeover for the Italians, Greeks and other profligates; it was a complete success. For a few years the spenders pretended that the euro had disciplined their public finances as it eliminated the recourse to competitive currency devaluation. The pact established the credibility of the ECB as a worthy inheritor of the sound money German Bundesbank and gave the euro a strong beginning and a decade of strong valuation.
In short order the euro was established, accepted and valued by the world's financial markets. It was the most successful introduction of a currency and central bank in history. The euro is a competitor to the dollar and yen in world markets and a growing competitor in reserve status to the dollar. The ECB is the world's second central bank and holder of the best inflation reputation. All of these are at least partially due to the rigorous criteria of the Stability and Growth Pact.
But the pact is another victim of the financial crisis and recession. Every member of the EMU has a 2009 and 2010 budget deficit above the 3% percent limit. But that has not stopped the lectures from the central euro duo of Germany and France.
"No government, no state can expect any special treatment". "Some governments, one in particular, has very difficult decisions to take". Jean Claude Trichet, the president of the European Central Bank said in his stern in his warning to the Greek Government. German Chancellor Angela Merkel noted that Greece's fiscal woes could hurt the euro.
The budget woes in Greece, Portugal, Spain and Ireland are not the only consideration weighing on the euro. European economic growth is moribund. The German Finance Minister expects GDP to be flat in the fourth quarter after 0.4% expansion in the second quarter and 0.7% in the third. EMU growth was 0.4% in the third quarter and is not expected to be very different in the fourth. ECB Interest rate policy is stationary and there will not be a fast withdrawal of the crisis liquidity from European money markets. In all of these factors, except perhaps GDP growth, the euro is no worse off than its two major competitors the dollar and the yen; only the United States is likely to have a stronger recovery in the fourth quarter.
German and French government deficits are moderate compared to those of Greece, Portugal, Ireland and Spain. But the ability of the two central member s of the EMU to enforce the 3% deficit limit or even to lead by example is very limited.
This is not the first breech of the deficit limit by Germany or France. The German deficit was over the limit for four consecutive years in the first half of the last decade. And the French ignored the limit when it suited their interests. The German deficit in 2009 was 3.2% and will likely be over limit again in 2010. This is of course nowhere near the level of Greece whose 2009 deficit was 12.7% of GDP.
But despite brave talk by government and ECB officials, it is the Greek Government that holds the whip hand. It is the Athenian politicians who must cut their budget and answer to their voters. If the Greek government is unable or unwilling to meet the demands of Germany and France, what then? If the Greek voters remove the current government for doing what the Northern Europeans want, what happens? Will Greece default on its sovereign debt? No. Will they leave or be forced out of the euro? No. Will the Greek Government make some very public efforts to bring down their deficit levels? Yes. Will the Greeks be able to stabilize their deficit under the 3% limit anytime in the next generation? Very problematical. What exactly can the French and Germans do if the Greeks, Italians and Portuguese do not cooperate?
The truth is that in a democratic system foreign governments have little recourse short of war to enforce international agreements on unwilling countries that can bear the consequences of their actions.
So what will be the result of this EMU deficit and debt crisis?
The euro will not be abandoned; sovereign debt will not be repudiated; profligate government will not suddenly develop budget discipline. But the Stability and Growth Pact, specifically the 3% deficit and 60% debt limits, will fade into history; it has served its purpose well. Publicly government and ECB officials will continue to praise the pact and its rules and demand adherence. Privately they will admit the game is up.
The most successful central bank of the past decade will now fall to earth. The ECB has been able to make disciplined monetary policy because the Stability and Growth Pact has limited the inflationary tendencies of the EMU governments. That restriction is now gone; the euro can only suffer in consequence.
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FX Trading
Monday, January 18, 2010
My Trading Book will be offline till 28th Jan 2010
I will be on vacation till 27th Jan 2010 and will do no posting as I will have no laptop with me this time.
See you all on 28th Jan 2010.
:)
See you all on 28th Jan 2010.
:)
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Market Update
18 Jan 10 : Market drifting along
Pre-Market Open Commentary for 18 January 2010
DJIA: 10609.65 -100.90
Nasdaq Composite: 2287.99 -28.75
Notwithstanding better-than-expected profit reports from JP Morgan, the US market slipped on Friday as investors focused on the negatives in the results, including JP Morgan’s larger-than-expected credit card write-offs and revenue that missed forecasts. Further, the economic readings were mixed, with worse-than-expected consumer sentiment index rising to 72.8 in January, against expectations of a rise to 74, from 72.5 in December. Inflation is largely contained with consumer price index (CPI) rising 0.1% in December, lower than forecasts of a 0.2% rise. Excluding the volatile food and energy prices, core-CPI rose 0.1%, which is in line with expectations. Manufacturing activity in the New York area bounced back to 15.9 in December, better-than-expectations of a climb to 12, from a revised 4.5 in November.
For the week, all the major indices ended lower. The Dow Jones Industrial Average declined marginally by 0.08% and S&P 500 fell 0.78% to end at 1144.98. Nasdaq composite lost 1.26%.
The results of corporate earnings will continue to set the tone of the market and the results due this week include those of Morgan Stanley and Goldman Sachs on Wednesday and Thursday respectively. The US market will be closed on Monday for Martin Luther King Jr, Day. There will be no market-moving economic news in the early part of this week but from Wednesday onwards, economic readings due include December reading on housing starts and building permits, producer price index, jobless claims data and manufacturing activity.
For the week, US light crude oil for February delivery fell US$4.75, or 5.74%, to settle at US$78.00 a barrel.
In Singapore today:
After attempts to head higher, the local bourse turned cautious and ended flat (1.1 points lower) on Friday trading due to the absence of fresh leads to lure bargain-hunters back into the market. For the week, the STI ended 14.34 points, or 0.49%, lower to close at 2908.42.
Expect market sentiment to be cautious and the local bourse to consolidate today taking leads from the weak Wall Street close last Friday.
Market is expected to focus on corporate earnings for the week ahead with results from M1, Mapletree Logistics, CapitaMall Trust and Ascott Reit due this week. Earnings results trickling from US will also have a knock-on effect on the market sentiment in the local bourse.
====
Mid day January 18. Asian stocks lower following negative lead from Wall Street
Thanks to the negative lead from Wall Street, Asian bourses were starting the new week between 0.2 and 2 per cent down. The knee jerk selling was in response to weak earnings from JP Morgan, putting some negative connotations about earnings expectations of the other US banks.
Looking to the week ahead, analysts say earnings will call the tune for stocks and a preference for `laggards'. The STI index rebounded from its nadir at 2897 points to end 9.09 points up at 2917.51 points. For every stock that rose about 1.2 fell. Turnover was 1bil shares with a value of $768mil traded.
Stocks fell from the open bell as traders took a dim view of Wall Street's close on Friday. The Hang Seng Index's 250 points slump at the open precipitated another round of selling but was seen as an opportunity for others. Shares of Financial One Corp bounced 1.5 cents at 62 cents as traders viewed its dip as a chance to buy. The company announced last week plans to list a subsidiary in Taiwan and was seeking strategic investors.
Sinotel rose 1.5 cents at 66 cents on talks that the company could be seeking to do a private placement not lower than 60 cents. Shares of Biosensors rose 3 cents at 86 cents after its Biomatrix drug eluting stent system was given the approval for reimbursement in France. Shares of PSL rose 2 cents at 48.5 cents on talks it may spin off a subsidiary. The stock has risen 37 percent since the start of the New year. Ezion got a lift from a buy report and rose 1.5 cents at 84 cents. Shares of Chasen rose 4.5 cents at 35.5 cents on talks of a possible corporate action regarding its Australian gold mine soon. Genting shares rose 4 cents at $1.29 as sentiments and groundswell grow over the impending opening of the Sentosa IR.
On the balance, shares of city Developments, Singapore Land, Haw Par, Ezra, NOL, Parkway and Swiber eased between 2 and 12 cents.
===========
Market Close January 18. Looking ahead to corporate earnings later this week
Asian bourses started the new week between 0.2 and 2 per cent down. The knee jerk selling was in response to weak earnings in the US from JP Morgan, putting some negative connotations about earnings expectations of the other US banks.
Looking to the week ahead, analysts say earnings will call the tune for stocks and a preference for `laggards'. The STI index rebounded from its nadir at 2897 points to end 3.60 points up at 2912.02 points. For every stock that rose about 1.2 fell. Turnover was 1.7bil shares with a value of $1.2bil traded.
Stocks fell from the open bell as traders took a dim view of Wall Street's close on Friday. The Hang Seng Index's 250 points slump at the open precipitated another round of selling but was seen as an opportunity for others. Shares of Financial One Corp bounced 0.5 cents at 61 cents as traders viewed its dip as a chance to buy. The company announced last week plans to list a subsidiary in Taiwan and was seeking strategic investors.
Sinotel rose declined 0.5 cents at 64 cents on talks that the company could be seeking to do a private placement not lower than 60 cents. Shares of Biosensors rose 5.5 cents at 88.5 cents after its Biomatrix drug eluting stent system was given the approval for reimbursement in France. Ezion got a lift from a buy report and rose 1 cents at 83.5 cents.
On the balance, shares of City Development, Haw Par, Ezra, Parkway and HPL eased between 4 and 16 cents.
DJIA: 10609.65 -100.90
Nasdaq Composite: 2287.99 -28.75
Notwithstanding better-than-expected profit reports from JP Morgan, the US market slipped on Friday as investors focused on the negatives in the results, including JP Morgan’s larger-than-expected credit card write-offs and revenue that missed forecasts. Further, the economic readings were mixed, with worse-than-expected consumer sentiment index rising to 72.8 in January, against expectations of a rise to 74, from 72.5 in December. Inflation is largely contained with consumer price index (CPI) rising 0.1% in December, lower than forecasts of a 0.2% rise. Excluding the volatile food and energy prices, core-CPI rose 0.1%, which is in line with expectations. Manufacturing activity in the New York area bounced back to 15.9 in December, better-than-expectations of a climb to 12, from a revised 4.5 in November.
For the week, all the major indices ended lower. The Dow Jones Industrial Average declined marginally by 0.08% and S&P 500 fell 0.78% to end at 1144.98. Nasdaq composite lost 1.26%.
The results of corporate earnings will continue to set the tone of the market and the results due this week include those of Morgan Stanley and Goldman Sachs on Wednesday and Thursday respectively. The US market will be closed on Monday for Martin Luther King Jr, Day. There will be no market-moving economic news in the early part of this week but from Wednesday onwards, economic readings due include December reading on housing starts and building permits, producer price index, jobless claims data and manufacturing activity.
For the week, US light crude oil for February delivery fell US$4.75, or 5.74%, to settle at US$78.00 a barrel.
In Singapore today:
After attempts to head higher, the local bourse turned cautious and ended flat (1.1 points lower) on Friday trading due to the absence of fresh leads to lure bargain-hunters back into the market. For the week, the STI ended 14.34 points, or 0.49%, lower to close at 2908.42.
Expect market sentiment to be cautious and the local bourse to consolidate today taking leads from the weak Wall Street close last Friday.
Market is expected to focus on corporate earnings for the week ahead with results from M1, Mapletree Logistics, CapitaMall Trust and Ascott Reit due this week. Earnings results trickling from US will also have a knock-on effect on the market sentiment in the local bourse.
====
Mid day January 18. Asian stocks lower following negative lead from Wall Street
Thanks to the negative lead from Wall Street, Asian bourses were starting the new week between 0.2 and 2 per cent down. The knee jerk selling was in response to weak earnings from JP Morgan, putting some negative connotations about earnings expectations of the other US banks.
Looking to the week ahead, analysts say earnings will call the tune for stocks and a preference for `laggards'. The STI index rebounded from its nadir at 2897 points to end 9.09 points up at 2917.51 points. For every stock that rose about 1.2 fell. Turnover was 1bil shares with a value of $768mil traded.
Stocks fell from the open bell as traders took a dim view of Wall Street's close on Friday. The Hang Seng Index's 250 points slump at the open precipitated another round of selling but was seen as an opportunity for others. Shares of Financial One Corp bounced 1.5 cents at 62 cents as traders viewed its dip as a chance to buy. The company announced last week plans to list a subsidiary in Taiwan and was seeking strategic investors.
Sinotel rose 1.5 cents at 66 cents on talks that the company could be seeking to do a private placement not lower than 60 cents. Shares of Biosensors rose 3 cents at 86 cents after its Biomatrix drug eluting stent system was given the approval for reimbursement in France. Shares of PSL rose 2 cents at 48.5 cents on talks it may spin off a subsidiary. The stock has risen 37 percent since the start of the New year. Ezion got a lift from a buy report and rose 1.5 cents at 84 cents. Shares of Chasen rose 4.5 cents at 35.5 cents on talks of a possible corporate action regarding its Australian gold mine soon. Genting shares rose 4 cents at $1.29 as sentiments and groundswell grow over the impending opening of the Sentosa IR.
On the balance, shares of city Developments, Singapore Land, Haw Par, Ezra, NOL, Parkway and Swiber eased between 2 and 12 cents.
===========
Market Close January 18. Looking ahead to corporate earnings later this week
Asian bourses started the new week between 0.2 and 2 per cent down. The knee jerk selling was in response to weak earnings in the US from JP Morgan, putting some negative connotations about earnings expectations of the other US banks.
Looking to the week ahead, analysts say earnings will call the tune for stocks and a preference for `laggards'. The STI index rebounded from its nadir at 2897 points to end 3.60 points up at 2912.02 points. For every stock that rose about 1.2 fell. Turnover was 1.7bil shares with a value of $1.2bil traded.
Stocks fell from the open bell as traders took a dim view of Wall Street's close on Friday. The Hang Seng Index's 250 points slump at the open precipitated another round of selling but was seen as an opportunity for others. Shares of Financial One Corp bounced 0.5 cents at 61 cents as traders viewed its dip as a chance to buy. The company announced last week plans to list a subsidiary in Taiwan and was seeking strategic investors.
Sinotel rose declined 0.5 cents at 64 cents on talks that the company could be seeking to do a private placement not lower than 60 cents. Shares of Biosensors rose 5.5 cents at 88.5 cents after its Biomatrix drug eluting stent system was given the approval for reimbursement in France. Ezion got a lift from a buy report and rose 1 cents at 83.5 cents.
On the balance, shares of City Development, Haw Par, Ezra, Parkway and HPL eased between 4 and 16 cents.
Labels:
Market Update
Saturday, January 16, 2010
15 Jan 10 : Ezra Ease Off
Pre-Market Open Commentary for 15 January 2010
DJIA: 10710.55 +29.78
Nasdaq Composite: 2316.74 +8.84
The US market continued its advance on Thursday, led largely by technology shares, as investors looked pass the mixed economic readings and geared up for Intel’s quarterly report which was released after market close. The world’s largest microchip maker reported a strong set of results, with 4QFY09 earnings of 40 UScts per share, ahead of expectations of 30 UScts per share, compared to 4 UScts per share in 4QFY08; quarterly sales revenue also topped expectations of US$10.2bil, with a 28% YoY growth in 4QFY09 revenue to US$10.6bil. Further, Intel issued an upbeat forward guidance saying that the company is confident about corporate IT spending coming back and expressed optimism about the future sales of the company’s server products.
On the economic front, retail sales readings were disappointing, with December retail sales falling 0.3%, below expectations of a 0.5% increase and retail sales (excluding autos) falling 0.2% in December, worse-than-expectations of a 0.3% rise, after rising 1.9% in November. To soften the blow, the holiday retail sales reading for the November and December period was better than expectations of a 1% decline, rising 1.1% during the period. The jobs readings were also mixed, with new claims for unemployment rising last week to 444,000, worse than expectations of 437,000, from 433,000 in the previous week while continuing claims fell to 4.596mil, better than expectations of 4.750mil, from 4.807mil in the previous week.
All the major indices ended higher, with the Dow Jones Industrial Average gaining 0.28% and S&P 500 rose 0.24% to close at 1,148.46. Nasdaq composite gained 0.38%.
Dow component JPMorgan Chase will be releasing its quarterly earnings on Friday. Economic readings including consumer price index in December, readings on manufacturing activities, consumer sentiment index for January and a regional read on manufacturing are also on the tap.
US light crude oil for February delivery further declined US$0.26 to settle at US$79.39 a barrel.
In Singapore today:
Most Asian markets rebounded yesterday taking cues from the overnight rally on Wall Street and as investors brushed aside the jitters sparked by China’s decision to raise the level banks have to set aside as reserves. Mirroring the major regional markets, the STI index regained the 2900 level, rising 21.14 points, or 0.61%, to 2,909.52, underpinned by financial and property shares as investors went on a bargain-hunting spree. For every stock that fell, 2.1 gained. Turnover was 2.38bil shares with a value of $1.80bil traded.
Shares of Otto Marine extended gains, adding 1 cent at 56 cents buoyed by two buy reports yesterday. Traders said the price action was also boosted by talks of a private placement in the offing. OKP rose initially but eventually closed unchanged at 51.5 cents on talks that company may soon announce a contract win. SPH gained 16 cents at $3.82 after a myriad of buy recommendations from analysts following its better than expected 1QFY10 results.
Expect market to extend gains today, albeit only modestly, following overnight advance on Wall Street and ahead of the weekend.
========
Mid Day January 15. Traders locked in gains ahead of weekend.
Wall Street pushed higher in spite of a surprised drop in retail sales figures. Typical of the weekend, traders would choose to pare down holdings and lock in quick gains. The STI index rose 5.9 points at 2915.42 points. For every stock that rose, 1.6 fell. Turnover was 866mil shares with a value of $691mil traded.
Ezra turned in a robust quarterly earning yesterday but fell 10 cents at $2.51 on a couple of downgrades from analysts. The downgrades came after the stock put on 19 percent this month and was deemed to have `priced in most positives' and was looking expensive on valuation in the near term. `Short of any surprise catalyst like contract wins, I think the stock will drift in the short term' a dealer said. Shares of Financial One soared on opening at 65 cents but was quickly beaten back to 62 cents (up 1 cent) on profit taking. The company announced plans to list shares of its subsidiary Chailease Holding on the Taiwanese stock exchange and sought to invite strategic investors to invest in the company. Sinotel shares was keeping steady, adding half a cent at 66.5 cents on talks that it may seek to place out shares to new strategic investors. Other stocks that rose were Jardine Matheson, DBS, GuocoLand, SGX, CapitaLand, Keppel Corp, OUE and Venture Corp that rose between 2 and 78 cents.
On the balance, shares of SIA, UOL, Indoagrc, Straits Asia, Junma, Jardine C&C, Keppel Land and China Fishery Group eased between 2 and 54 cents.
=======
DJIA: 10710.55 +29.78
Nasdaq Composite: 2316.74 +8.84
The US market continued its advance on Thursday, led largely by technology shares, as investors looked pass the mixed economic readings and geared up for Intel’s quarterly report which was released after market close. The world’s largest microchip maker reported a strong set of results, with 4QFY09 earnings of 40 UScts per share, ahead of expectations of 30 UScts per share, compared to 4 UScts per share in 4QFY08; quarterly sales revenue also topped expectations of US$10.2bil, with a 28% YoY growth in 4QFY09 revenue to US$10.6bil. Further, Intel issued an upbeat forward guidance saying that the company is confident about corporate IT spending coming back and expressed optimism about the future sales of the company’s server products.
On the economic front, retail sales readings were disappointing, with December retail sales falling 0.3%, below expectations of a 0.5% increase and retail sales (excluding autos) falling 0.2% in December, worse-than-expectations of a 0.3% rise, after rising 1.9% in November. To soften the blow, the holiday retail sales reading for the November and December period was better than expectations of a 1% decline, rising 1.1% during the period. The jobs readings were also mixed, with new claims for unemployment rising last week to 444,000, worse than expectations of 437,000, from 433,000 in the previous week while continuing claims fell to 4.596mil, better than expectations of 4.750mil, from 4.807mil in the previous week.
All the major indices ended higher, with the Dow Jones Industrial Average gaining 0.28% and S&P 500 rose 0.24% to close at 1,148.46. Nasdaq composite gained 0.38%.
Dow component JPMorgan Chase will be releasing its quarterly earnings on Friday. Economic readings including consumer price index in December, readings on manufacturing activities, consumer sentiment index for January and a regional read on manufacturing are also on the tap.
US light crude oil for February delivery further declined US$0.26 to settle at US$79.39 a barrel.
In Singapore today:
Most Asian markets rebounded yesterday taking cues from the overnight rally on Wall Street and as investors brushed aside the jitters sparked by China’s decision to raise the level banks have to set aside as reserves. Mirroring the major regional markets, the STI index regained the 2900 level, rising 21.14 points, or 0.61%, to 2,909.52, underpinned by financial and property shares as investors went on a bargain-hunting spree. For every stock that fell, 2.1 gained. Turnover was 2.38bil shares with a value of $1.80bil traded.
Shares of Otto Marine extended gains, adding 1 cent at 56 cents buoyed by two buy reports yesterday. Traders said the price action was also boosted by talks of a private placement in the offing. OKP rose initially but eventually closed unchanged at 51.5 cents on talks that company may soon announce a contract win. SPH gained 16 cents at $3.82 after a myriad of buy recommendations from analysts following its better than expected 1QFY10 results.
Expect market to extend gains today, albeit only modestly, following overnight advance on Wall Street and ahead of the weekend.
========
Mid Day January 15. Traders locked in gains ahead of weekend.
Wall Street pushed higher in spite of a surprised drop in retail sales figures. Typical of the weekend, traders would choose to pare down holdings and lock in quick gains. The STI index rose 5.9 points at 2915.42 points. For every stock that rose, 1.6 fell. Turnover was 866mil shares with a value of $691mil traded.
Ezra turned in a robust quarterly earning yesterday but fell 10 cents at $2.51 on a couple of downgrades from analysts. The downgrades came after the stock put on 19 percent this month and was deemed to have `priced in most positives' and was looking expensive on valuation in the near term. `Short of any surprise catalyst like contract wins, I think the stock will drift in the short term' a dealer said. Shares of Financial One soared on opening at 65 cents but was quickly beaten back to 62 cents (up 1 cent) on profit taking. The company announced plans to list shares of its subsidiary Chailease Holding on the Taiwanese stock exchange and sought to invite strategic investors to invest in the company. Sinotel shares was keeping steady, adding half a cent at 66.5 cents on talks that it may seek to place out shares to new strategic investors. Other stocks that rose were Jardine Matheson, DBS, GuocoLand, SGX, CapitaLand, Keppel Corp, OUE and Venture Corp that rose between 2 and 78 cents.
On the balance, shares of SIA, UOL, Indoagrc, Straits Asia, Junma, Jardine C&C, Keppel Land and China Fishery Group eased between 2 and 54 cents.
=======
Labels:
Market Update
Friday, January 15, 2010
14 Jan 10 : Another hard day for me
Out of Yanlord at $2.10, incurring $1000 loss.
Stupid Break Peak Theory. I will not use it anymore :)
================
Pre-Market Open Commentary for 14 January 2010
DJIA: 10680.77 +53.51
Nasdaq Composite: 2307.90 +25.59
The US market rebounded on Wednesday, led by technology and financial shares, despite Google’s threat to pullout of China due to reported cyber attacks and attempts to access the Gmail accounts of human rights activists as well as testifications by major banks’ CEOs about the mistakes made in the lead-up to the financial crisis.
On the economic front, the Federal Reserve (Fed) released its periodic “beige book” report on the economic conditions which showed overall improvement in the Fed’s 12 districts but credit conditions have deteriorated. Also, the December Treasury budget deficit of US$91.9bil was largely in line with expectations of about US$92.0bil, and an improvement from a deficit of US$120.3 bil in November.
All the major indices ended higher, with the Dow Jones Industrial Average gaining 0.50% to close at a 15-month high of 10,680.77. S&P 500 rose 0.83% to close at 1,145.68 and Nasdaq composite gained 1.12%.
On Thursday, Dow component stock, Intel will be releasing its quarterly earnings. Economic readings including December retail sales, November business inventories, holiday retail sales, weekly jobless claims and December import and export prices are also on the tap.
US light crude oil for February delivery further declined US$1.14 to settle at US$79.65 a barrel.
In Singapore today:
The regional markets slumped following China’s move to tighten monetary conditions sparked concerns that demand would slow and affect the recovering economy. Earlier this week, China raised banks’ reserve requirement ratio by 0.5 percentage points to absorb excess liquidity. The People’s Bank of China also raised the yield of its one-year bills, its second increase in inter-bank markets in a week. The turn in monetary policy (tightening) resulted in the Shanghai market plunging 3.09% while the Hang Seng index shed 2.59%. The market decline in Singapore was more muted, with the STI losing 27.73 points, or 0.95%, to 2,888.38. For every stock that gained, 2.9 fell. Turnover was 2.24bil shares with a value of $1.73bil traded.
Expect market to rebound today taking cues from the overnight advances on Wall Street. In the absence of major economic news flow, market is expected to re-focus on the fourth-quarter earnings season.
====
Mid Day January 14. Asian markets boosted by Wall Street's gain.
Wall Street recovered from their early session weakness to close higher after a day of see-saw trading. The positive lead was a boost for the Asian markets after 2 sessions of relative weakness. The purging in the last two sessions gave sidelined buyers an opportunity for an entry level and rejuvenated some stocks to higher levels. The STI index added 28.49 points at 2916.87 points. For every stock that fell, 4 rose. Turnover was 1.2bil shares with a value of $892mil traded.
Shares of Otto Marine extended gains, adding 1.5 cents at 56.5 cents buoyed by two buy reports yesterday. Traders said the price action was also boosted by talks of a private placement in the offing. OKP rose 2 cents at 53.5 cents on talks that company may soon announce a contract win. SPH gained 12 cents at $3.78 after a myriad of buy recommendations from analysts following its better than expected 1QFY10 results. Pan Hong rose 2.5 cents at 69 cents despite weaker Chinese peers (on the back of the government's efforts to cool property prices) on talks there were some corporate actions looming. SingTel rose 6 cents at $3.03 as talks that it may list a part of Optus (Australia) surfaced. Other issues that rose were Jardine C&C, DBS, SGX, China Fishery Group, SGX, Keppel Corp, HPL and Wing Tai that rose between 4 and 48 cents.
Shares of Ramba fell 5 cents at 57.5 cents after the company (halted for last two days) said it was placing out 35mil shares at a deep discount of 52.5 cents. From its last done price of 62.5 cents, dealers said some investors were squirmish about the hefty discount. Other stocks that eased were Sim Lian, Keppel T&T, Sarin, OUE, Jardine Matheson, Heng Long, PSL and Ascott Reit that eased between 1 and 10 cents.
======
Market close Jan 14. Profit taking slices some of market's earlier gains
Wall Street‚s fir m overnight close gave a boost for the Asian markets after 2 sessions of relative weakness. The purging in the last two sessions gave sidelined buyers an opportunity for an entry level and rejuvenated some stocks to higher levels. The STI index added 21.14 points at 2,909.52 points. There was some profit taking towards the close. For every stock that fell, 2 rose. Turnover was 2.38bil shares with a value of $1.8bil traded.
Shares of Otto Marine extended gains, adding 1cent at 56 cents buoyed by two buy reports yesterday. Traders said the price action was also boosted by talks of a private placement in the offing.
OKP rose initially but eventually closed unchanged at 51.5 cents on talks that company may soon announce a contract win. SPH gained 16 cents at $3.82 after a myriad of buy recommendations from analysts following its better than expected 1QFY10 results.
Pan Hong rose 3.5 cents at 70 cents despite weaker Chinese peers (on the back of the governm e nt's efforts to cool property prices) on talks there were some corporate actions looming. SingTel rose 5 cents at $3.02 as talks that it may list a part of Optus (Australia) surfaced.
Shares of Ramba fell 6 cents at 57 cents after the company (trading halted for last two days) said it was placing out 35mil shares at a deep discount of 52.5 cents. From its last done price of 62.5 cents, dealers said some investors were squirmish about the hefty discount. Other stocks that eased were Sim Lian, Keppel T&T, Sarin, OUE, Jardine Matheson, Heng Long, PSL and Ascott Reit that eased between 1 and 10 cents.
Stupid Break Peak Theory. I will not use it anymore :)
================
Pre-Market Open Commentary for 14 January 2010
DJIA: 10680.77 +53.51
Nasdaq Composite: 2307.90 +25.59
The US market rebounded on Wednesday, led by technology and financial shares, despite Google’s threat to pullout of China due to reported cyber attacks and attempts to access the Gmail accounts of human rights activists as well as testifications by major banks’ CEOs about the mistakes made in the lead-up to the financial crisis.
On the economic front, the Federal Reserve (Fed) released its periodic “beige book” report on the economic conditions which showed overall improvement in the Fed’s 12 districts but credit conditions have deteriorated. Also, the December Treasury budget deficit of US$91.9bil was largely in line with expectations of about US$92.0bil, and an improvement from a deficit of US$120.3 bil in November.
All the major indices ended higher, with the Dow Jones Industrial Average gaining 0.50% to close at a 15-month high of 10,680.77. S&P 500 rose 0.83% to close at 1,145.68 and Nasdaq composite gained 1.12%.
On Thursday, Dow component stock, Intel will be releasing its quarterly earnings. Economic readings including December retail sales, November business inventories, holiday retail sales, weekly jobless claims and December import and export prices are also on the tap.
US light crude oil for February delivery further declined US$1.14 to settle at US$79.65 a barrel.
In Singapore today:
The regional markets slumped following China’s move to tighten monetary conditions sparked concerns that demand would slow and affect the recovering economy. Earlier this week, China raised banks’ reserve requirement ratio by 0.5 percentage points to absorb excess liquidity. The People’s Bank of China also raised the yield of its one-year bills, its second increase in inter-bank markets in a week. The turn in monetary policy (tightening) resulted in the Shanghai market plunging 3.09% while the Hang Seng index shed 2.59%. The market decline in Singapore was more muted, with the STI losing 27.73 points, or 0.95%, to 2,888.38. For every stock that gained, 2.9 fell. Turnover was 2.24bil shares with a value of $1.73bil traded.
Expect market to rebound today taking cues from the overnight advances on Wall Street. In the absence of major economic news flow, market is expected to re-focus on the fourth-quarter earnings season.
====
Mid Day January 14. Asian markets boosted by Wall Street's gain.
Wall Street recovered from their early session weakness to close higher after a day of see-saw trading. The positive lead was a boost for the Asian markets after 2 sessions of relative weakness. The purging in the last two sessions gave sidelined buyers an opportunity for an entry level and rejuvenated some stocks to higher levels. The STI index added 28.49 points at 2916.87 points. For every stock that fell, 4 rose. Turnover was 1.2bil shares with a value of $892mil traded.
Shares of Otto Marine extended gains, adding 1.5 cents at 56.5 cents buoyed by two buy reports yesterday. Traders said the price action was also boosted by talks of a private placement in the offing. OKP rose 2 cents at 53.5 cents on talks that company may soon announce a contract win. SPH gained 12 cents at $3.78 after a myriad of buy recommendations from analysts following its better than expected 1QFY10 results. Pan Hong rose 2.5 cents at 69 cents despite weaker Chinese peers (on the back of the government's efforts to cool property prices) on talks there were some corporate actions looming. SingTel rose 6 cents at $3.03 as talks that it may list a part of Optus (Australia) surfaced. Other issues that rose were Jardine C&C, DBS, SGX, China Fishery Group, SGX, Keppel Corp, HPL and Wing Tai that rose between 4 and 48 cents.
Shares of Ramba fell 5 cents at 57.5 cents after the company (halted for last two days) said it was placing out 35mil shares at a deep discount of 52.5 cents. From its last done price of 62.5 cents, dealers said some investors were squirmish about the hefty discount. Other stocks that eased were Sim Lian, Keppel T&T, Sarin, OUE, Jardine Matheson, Heng Long, PSL and Ascott Reit that eased between 1 and 10 cents.
======
Market close Jan 14. Profit taking slices some of market's earlier gains
Wall Street‚s fir m overnight close gave a boost for the Asian markets after 2 sessions of relative weakness. The purging in the last two sessions gave sidelined buyers an opportunity for an entry level and rejuvenated some stocks to higher levels. The STI index added 21.14 points at 2,909.52 points. There was some profit taking towards the close. For every stock that fell, 2 rose. Turnover was 2.38bil shares with a value of $1.8bil traded.
Shares of Otto Marine extended gains, adding 1cent at 56 cents buoyed by two buy reports yesterday. Traders said the price action was also boosted by talks of a private placement in the offing.
OKP rose initially but eventually closed unchanged at 51.5 cents on talks that company may soon announce a contract win. SPH gained 16 cents at $3.82 after a myriad of buy recommendations from analysts following its better than expected 1QFY10 results.
Pan Hong rose 3.5 cents at 70 cents despite weaker Chinese peers (on the back of the governm e nt's efforts to cool property prices) on talks there were some corporate actions looming. SingTel rose 5 cents at $3.02 as talks that it may list a part of Optus (Australia) surfaced.
Shares of Ramba fell 6 cents at 57 cents after the company (trading halted for last two days) said it was placing out 35mil shares at a deep discount of 52.5 cents. From its last done price of 62.5 cents, dealers said some investors were squirmish about the hefty discount. Other stocks that eased were Sim Lian, Keppel T&T, Sarin, OUE, Jardine Matheson, Heng Long, PSL and Ascott Reit that eased between 1 and 10 cents.
Labels:
Yanlord
Wednesday, January 13, 2010
13 Jan 10 : Market Slide Down Down Down
My Citigroup as sold last night as the share continued its slide down. It hit my stop loss of $2.50. I bought at $2.18 so that's a nice profit. Having said that, I am still very bullish on Citigroup so I wonder where is my mental strength of not just sticking with this share instead of moving my stop loss up to $2.50
But then, a profit is a profit.
On the other hand, my Singapore shares did terribly today as the Singapore market went crashing down :)
======
Pre-Market Open Commentary for 13 January 2010
________________________________________
DJIA: 10627.26 -36.73
Nasdaq Composite: 2282.31 -30.10
________________________________________
The US market staged a broad-based selloff on Tuesday following Alcoa’s worse-than-expected profit report and Chevron’s profit warning which unnerved investors at the start of the quarterly reporting season. After market close on Monday, the aluminium maker reported a profit of 1 cent per share, falling below expectations of 6 cents, from a loss of 28 cents per share a year ago; revenue however fell less than expected. Further, Chevron warned of a sharply lower fourth-quarter refining earnings as margins have been under pressure as a result of rising oil prices but demand has been weak globally due to the economic slowdown. On the economic front, the US trade deficit in November was also worse-than-expected, widening to US$36.4 bil, against expectations of a trade imbalance of US$34.5bil, from a revised US$33.2 bil in October.
All the major indices ended lower, with the Dow Jones Industrial Average falling 0.34% and S&P 500 losing 0.94% to close at 1,136.22. Nasdaq composite declined 1.30%.
On Wednesday, there are no earnings results due for major Dow component stocks but the government will release the December Treasury budget which is expected to narrow to US$70.4bil from US$120.3bil. Also due on the same day is the weekly crude oil inventory report.
US light crude oil for February delivery further fell US$1.73 to settle at US$80.79 a barrel.
________________________________________
In Singapore today:
Wall Street closed modestly higher on Monday but worse-than-expected results of Alcoa (released after US market closed on Monday) signaled a market bullback. A tighter monetary policy by China’s central bank which raised the banks’ reserve requirement ratio by 0.5 percentage point to absorb excess liquidity led to further profit-taking. The STI closed down 17.42 points to 2916.11. For every stock that gained, 1.8 fell. Turnover was 2.86bil shares with a value of $2.05bil traded.
Shares that declined were City Dev, DBS, Keppel Corp, UOB, and Indo Agri, which eased between 6 and 20 cents while shares of Jardine C&C, Straits Trading, Bio-Treat, Ezra and Wilmar rose between 6 and 24 cents.
Expect market to consolidate further today taking cues from the weak overnight close on Wall Street. The PRC government’s move to raise banks’ reserve ratio, a signal that the PRC has started to tighten monetary policy with its economy recovering back to the brink of overheating and that additional measures from Beijing may be on the cards, will further dampen investor sentiment.
========
Mid Day January 13. Asian bourses traded lower.
Wall Street fell as expected led by mining stocks on Alcoa's earnings miss but the limelight fell on China Tuesday morning due to its surprise central bank move. The PBoC's 50 basis points hike in the required reserve ratio took the markets by surprise and marked a turn in monetary policy (tightening) since the fourth quarter of 2008. The Shanghai Composite index opened 2.1 percent down on lower commodity, banks and property issues.
Asian bourses were lower with the STI index down 16.32 points at 2899.79 points. For every stock that rose, 3 fell. Turnover was 1.2bil shares with a value of $900mil traded. Straits Asia shed 5 cents at $2.55 after being downgraded by a local broker and in line with the slide in mining stocks. Traders believed the stock would be supported given the strong outlook for coal prices. Broadway shares jumped 7.5 cents at 85.5 cents after a local broker initiated a buy report with a target of $1.28. Shares of Otto Marine jumped 1.5 cents at 51.5 cents with two brokers issuing buy calls. A trader said the stock price action was also bouyed by talks that company may be doing a private placement to some strategic investors. Marco Polo rose 1.5 cents at 58.5 cents after a local broker issued a buy call with a target of 74.5 cents.
Other issues that rose were Jardine Strategic, Koon, DBS, Midas and Swiber that added between 1 and 22 cents. On the balance, shares of STX Panocean, Jardine C&C, Keppel Corp, Wilmar, Parkway, F&N, Indo Agric and Venture Corp that shed between 2 and 48 cents.
But then, a profit is a profit.
On the other hand, my Singapore shares did terribly today as the Singapore market went crashing down :)
======
Pre-Market Open Commentary for 13 January 2010
________________________________________
DJIA: 10627.26 -36.73
Nasdaq Composite: 2282.31 -30.10
________________________________________
The US market staged a broad-based selloff on Tuesday following Alcoa’s worse-than-expected profit report and Chevron’s profit warning which unnerved investors at the start of the quarterly reporting season. After market close on Monday, the aluminium maker reported a profit of 1 cent per share, falling below expectations of 6 cents, from a loss of 28 cents per share a year ago; revenue however fell less than expected. Further, Chevron warned of a sharply lower fourth-quarter refining earnings as margins have been under pressure as a result of rising oil prices but demand has been weak globally due to the economic slowdown. On the economic front, the US trade deficit in November was also worse-than-expected, widening to US$36.4 bil, against expectations of a trade imbalance of US$34.5bil, from a revised US$33.2 bil in October.
All the major indices ended lower, with the Dow Jones Industrial Average falling 0.34% and S&P 500 losing 0.94% to close at 1,136.22. Nasdaq composite declined 1.30%.
On Wednesday, there are no earnings results due for major Dow component stocks but the government will release the December Treasury budget which is expected to narrow to US$70.4bil from US$120.3bil. Also due on the same day is the weekly crude oil inventory report.
US light crude oil for February delivery further fell US$1.73 to settle at US$80.79 a barrel.
________________________________________
In Singapore today:
Wall Street closed modestly higher on Monday but worse-than-expected results of Alcoa (released after US market closed on Monday) signaled a market bullback. A tighter monetary policy by China’s central bank which raised the banks’ reserve requirement ratio by 0.5 percentage point to absorb excess liquidity led to further profit-taking. The STI closed down 17.42 points to 2916.11. For every stock that gained, 1.8 fell. Turnover was 2.86bil shares with a value of $2.05bil traded.
Shares that declined were City Dev, DBS, Keppel Corp, UOB, and Indo Agri, which eased between 6 and 20 cents while shares of Jardine C&C, Straits Trading, Bio-Treat, Ezra and Wilmar rose between 6 and 24 cents.
Expect market to consolidate further today taking cues from the weak overnight close on Wall Street. The PRC government’s move to raise banks’ reserve ratio, a signal that the PRC has started to tighten monetary policy with its economy recovering back to the brink of overheating and that additional measures from Beijing may be on the cards, will further dampen investor sentiment.
========
Mid Day January 13. Asian bourses traded lower.
Wall Street fell as expected led by mining stocks on Alcoa's earnings miss but the limelight fell on China Tuesday morning due to its surprise central bank move. The PBoC's 50 basis points hike in the required reserve ratio took the markets by surprise and marked a turn in monetary policy (tightening) since the fourth quarter of 2008. The Shanghai Composite index opened 2.1 percent down on lower commodity, banks and property issues.
Asian bourses were lower with the STI index down 16.32 points at 2899.79 points. For every stock that rose, 3 fell. Turnover was 1.2bil shares with a value of $900mil traded. Straits Asia shed 5 cents at $2.55 after being downgraded by a local broker and in line with the slide in mining stocks. Traders believed the stock would be supported given the strong outlook for coal prices. Broadway shares jumped 7.5 cents at 85.5 cents after a local broker initiated a buy report with a target of $1.28. Shares of Otto Marine jumped 1.5 cents at 51.5 cents with two brokers issuing buy calls. A trader said the stock price action was also bouyed by talks that company may be doing a private placement to some strategic investors. Marco Polo rose 1.5 cents at 58.5 cents after a local broker issued a buy call with a target of 74.5 cents.
Other issues that rose were Jardine Strategic, Koon, DBS, Midas and Swiber that added between 1 and 22 cents. On the balance, shares of STX Panocean, Jardine C&C, Keppel Corp, Wilmar, Parkway, F&N, Indo Agric and Venture Corp that shed between 2 and 48 cents.
Labels:
Citigroup,
Market Update
Will there be another recession
Recessions: One Down; One to Go
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Obscured in the gloom of Friday's Non Farm Payrolls was an even more downbeat assessment of the state of the United States economy. The American consumer remains in recession. This critical judgment comes directly from America's households.
Consumer credit contracted by $17.5 billon in November. That is the tenth straight month that Americans have decided to pay down debt and it is the longest negative run in the 66 year history of the series. Not only did consumers choose repayment over consumption but it was the largest monthly drawdown on record. Corporate profitability may be exciting Wall Street but with unemployment at a generational peak there is no optimism for the American worker and consumer
The disappointment over the -85,000 headline Non Farm Payrolls number obscured even more troubling figures within the report. The unemployment rate was stable at 10.0% because the number of workers seeking positions fell by 661,000 not because those losing and finding jobs were equal. If these workers had remained under the Bureau of Labor Statistics (BLS) count the unemployment rate would have risen to almost 10.4%. Those workers will eventually return to the job hunt and the unemployment rate will surge when they do unless they are quickly enlisted in the work force. Participation in the labor force fell to 64.6% in November from October's 64.9%. Household employment which records small business jobs, and is the primary engine for new employment, dropped by 589,000 after rising modestly in October.
Despite the end of one year of negative GDP with the 2.2% expansion in the third quarter and the fourth quarter's 4% estimate employers are not hiring. The virtuous circle when anticipation of future consumption and consumer spending prompts employers to add staff while the choice of employees is high and the costs low can also play in reverse. Expectation of a prolonged period of static or low consumption will retard employment planning as firms focus on continued improvement in productivity per worker. The endless legislative process in Washington has not helped and has probably inhibited hiring as firms cannot assess future tax and regulatory costs when their final legal obligations are unknown.
Businesses have survived a traumatic environment for more than two years by slashing costs and staff and vastly improving productivity. Firms are now naturally cautious about increasing spending and perhaps even a little surprised at the success of their productivity efforts. If anything could convince reluctant business planners that a robust economic recovery was around the corner it would be a substantial rebound in consumer spending. But by any standard that has not occurred.
Federal Reserve officials have said that tighter bank lending standards and credit line reductions are hindering consumer spending. But the logic of that analysis is weak. It is largely concern for their future earnings and the consequent concern for present debt levels that is driving consumer decision making.
The choice to reduce the debit side of household balance sheets is voluntary. It is made by people who have discretionary funds, who are still employed. Banks do not write to credit cards holders, from whom they are collecting hugely profitable interest charges, advising them to reduce their overall balances. Consumers have made the analysis themselves.
When the recession began the amount of consumer debt was already established. The motivation to pay down credit balances was not irrevocable; consumers could have simply chosen not to expand their current indebtedness or they could have continued to add to their credit sheets.
In the ten months since January consumers have subtracted from their overall debt balance every month. It has been revolving credit, which includes cards and most individual short and medium term debt that has fallen each month. Consumers have reduced revolving debt every one of the fourteen months since the Lehman bankruptcy last September. The consumer reaction to the financial crisis has been immediate, sustained and one way.
In contrast non-revolving credit (fixed amount, fixed term) has grown in three of the ten months since January and in two was barely negative (less than -$1 billion). If we include the last quarter of 2008 it has been positive is six of the past fourteen months.
It is the consumption side of consumer spending, as opposed to the investment portion that has absorbed the vast majority of the reduction in debt. This is income that would normally be available for plasma screens, trips to Disneyland and the mall, video games and restaurant meals. The income has not disappeared but the utilization has dramatically altered.
The average monthly revolving debt retirement has been remarkably consistent, indicating that it is determined by available income and the level of total outstanding debt and has not by the varying prospects for the stock market, the job picture or the economy in general. In the fourth quarter of 2008 consumers retired an average of $5.94 billion each month; in the first quarter of 2009 $7.69 billion; in the second quarter $7.52 billion; in the third quarter $5.55 billion. In the first two thirds of the fourth quarter the monthly payback amount jumped to $10.53 billion, but that amount may well revert to the mean on revision. If it does not then it is possible that consumer attitudes have taken another turn for the worse.
The difference between the acquisition and retirement of consumer revolving debt pre and post Lehman is striking. In the four quarters after September 2008 consumers paid back an average of $6.7 billion in revolving debt per month: in the previous two years they had increased the same debt an average of only $4.6 billion per month.
In spite of the virulent recession, massive job losses, huge reductions in wealth and general economic gloom Americans somehow managed to increase their monthly debt retirement by 46% of their previous monthly credit extension.
This effort speaks of an extraordinary motivation and a high level of fear and discomfort with household debt levels. Until consumers are again comfortable with their level of debt the second recession, the consumer recession cannot end; and until it does the end of the first recession is almost moot.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Obscured in the gloom of Friday's Non Farm Payrolls was an even more downbeat assessment of the state of the United States economy. The American consumer remains in recession. This critical judgment comes directly from America's households.
Consumer credit contracted by $17.5 billon in November. That is the tenth straight month that Americans have decided to pay down debt and it is the longest negative run in the 66 year history of the series. Not only did consumers choose repayment over consumption but it was the largest monthly drawdown on record. Corporate profitability may be exciting Wall Street but with unemployment at a generational peak there is no optimism for the American worker and consumer
The disappointment over the -85,000 headline Non Farm Payrolls number obscured even more troubling figures within the report. The unemployment rate was stable at 10.0% because the number of workers seeking positions fell by 661,000 not because those losing and finding jobs were equal. If these workers had remained under the Bureau of Labor Statistics (BLS) count the unemployment rate would have risen to almost 10.4%. Those workers will eventually return to the job hunt and the unemployment rate will surge when they do unless they are quickly enlisted in the work force. Participation in the labor force fell to 64.6% in November from October's 64.9%. Household employment which records small business jobs, and is the primary engine for new employment, dropped by 589,000 after rising modestly in October.
Despite the end of one year of negative GDP with the 2.2% expansion in the third quarter and the fourth quarter's 4% estimate employers are not hiring. The virtuous circle when anticipation of future consumption and consumer spending prompts employers to add staff while the choice of employees is high and the costs low can also play in reverse. Expectation of a prolonged period of static or low consumption will retard employment planning as firms focus on continued improvement in productivity per worker. The endless legislative process in Washington has not helped and has probably inhibited hiring as firms cannot assess future tax and regulatory costs when their final legal obligations are unknown.
Businesses have survived a traumatic environment for more than two years by slashing costs and staff and vastly improving productivity. Firms are now naturally cautious about increasing spending and perhaps even a little surprised at the success of their productivity efforts. If anything could convince reluctant business planners that a robust economic recovery was around the corner it would be a substantial rebound in consumer spending. But by any standard that has not occurred.
Federal Reserve officials have said that tighter bank lending standards and credit line reductions are hindering consumer spending. But the logic of that analysis is weak. It is largely concern for their future earnings and the consequent concern for present debt levels that is driving consumer decision making.
The choice to reduce the debit side of household balance sheets is voluntary. It is made by people who have discretionary funds, who are still employed. Banks do not write to credit cards holders, from whom they are collecting hugely profitable interest charges, advising them to reduce their overall balances. Consumers have made the analysis themselves.
When the recession began the amount of consumer debt was already established. The motivation to pay down credit balances was not irrevocable; consumers could have simply chosen not to expand their current indebtedness or they could have continued to add to their credit sheets.
In the ten months since January consumers have subtracted from their overall debt balance every month. It has been revolving credit, which includes cards and most individual short and medium term debt that has fallen each month. Consumers have reduced revolving debt every one of the fourteen months since the Lehman bankruptcy last September. The consumer reaction to the financial crisis has been immediate, sustained and one way.
In contrast non-revolving credit (fixed amount, fixed term) has grown in three of the ten months since January and in two was barely negative (less than -$1 billion). If we include the last quarter of 2008 it has been positive is six of the past fourteen months.
It is the consumption side of consumer spending, as opposed to the investment portion that has absorbed the vast majority of the reduction in debt. This is income that would normally be available for plasma screens, trips to Disneyland and the mall, video games and restaurant meals. The income has not disappeared but the utilization has dramatically altered.
The average monthly revolving debt retirement has been remarkably consistent, indicating that it is determined by available income and the level of total outstanding debt and has not by the varying prospects for the stock market, the job picture or the economy in general. In the fourth quarter of 2008 consumers retired an average of $5.94 billion each month; in the first quarter of 2009 $7.69 billion; in the second quarter $7.52 billion; in the third quarter $5.55 billion. In the first two thirds of the fourth quarter the monthly payback amount jumped to $10.53 billion, but that amount may well revert to the mean on revision. If it does not then it is possible that consumer attitudes have taken another turn for the worse.
The difference between the acquisition and retirement of consumer revolving debt pre and post Lehman is striking. In the four quarters after September 2008 consumers paid back an average of $6.7 billion in revolving debt per month: in the previous two years they had increased the same debt an average of only $4.6 billion per month.
In spite of the virulent recession, massive job losses, huge reductions in wealth and general economic gloom Americans somehow managed to increase their monthly debt retirement by 46% of their previous monthly credit extension.
This effort speaks of an extraordinary motivation and a high level of fear and discomfort with household debt levels. Until consumers are again comfortable with their level of debt the second recession, the consumer recession cannot end; and until it does the end of the first recession is almost moot.
Labels:
FX Trading
Tuesday, January 12, 2010
12 Jan 10 : Market Down
Pre-Market Open Commentary for 12 January 2010
DJIA: 10663.99 +45.80
Nasdaq Composite: 2312.41 -4.76
It was a volatile session on Wall Street as the market grappled with a weak dollar, higher commodity prices and a selloff in technology shares ahead of the start of the quarterly reporting season, which began with Alcoa. The aluminium maker reported a profit of 1 cent per share, falling below expectations of 6 cents, from a loss of 28 cents per share a year ago; revenue however fell less than expected.
The major indices ended mixed, with the Dow Jones Industrial Average rising 0.43% and S&P 500 gained 0.17% to close at 1,146.98. Nasdaq composite ended lower, easing 0.21%.
Market focus will be on companies’ earnings guidance for 2010 during this quarterly earnings season as companies are expected to report outstanding YoY earnings growth in the fourth quarter of 2009 when comparing with the fourth quarter of 2008 which was the height of economic recession. On Tuesday, there are no results due for major Dow component stocks but prior to market opening, the government is expected to release the November trade balance, which is expected to have widened to US$34.8bil from US$32.9bil in October.
US light crude oil for February delivery further fell US$0.47 to settle at US$82.28 a barrel.
In Singapore today:
The market advance continued on Monday following a positive Wall Street close last Friday and an upbeat exports data from China which achieved outstanding trade figures in December 2009 as exports grew 17.7% from a year ago to break 13 months of declines. The STI rose 10.77 points to 2933.53. For every stock that fell, 2.6 rose. Turnover was 3.1bil shares with a value of $2.1bil traded.
Seasonal demand and recent favourable reports were a boost for the palm oil stocks. Shares of Wilmar, Golden Agric, IndoAgric, First Resources and Kencana Resources rose between 1 and 17 cents. Strong freight rates and the belief in trade growth boosted NOL 12 cents to $1.90. Hong Leong Asia rose 37 cents at $3.25 after a local broker issued a buy report with a target of $4.08. China Sports extended gains, adding 2.5 cents at 22.5 cents after a broker revised its price target to 35 cents when the company clinched an exclusive master distribution rights for FIFA collections in the PRC.
Other shares of Creative Technology, STX Panocean, DBS, UOL, Noble Group, Olam, NOL, City Developments, Ezra and HPL rose between 2 and 42 cents.
Expect market to consolidate today taking cues from the mixed overnight close on Wall Street and as market awaits fresh economic releases and quarterly earnings results of major US companies, including those of Intel and JP Morgan Chase this Thursday and Friday respectively.
========
Mid Day January 12. Aggressive selling in early trade bewildered many.
Wall Street closed modestly higher but signalled a pullback when bellweather Alcoa reported results that was below expectations. US index futures eased signalling a speed bump ahead while Alcoa fell in after hours trading.
The `Alcoa factor' was probably the excuse traders needed to lock in their profits after recent sessions of gains. A dealer noted that the correction may be shallow since ` a lot of people are still sidelined with cash'. The STI index recovered from its 2922.35 nadir to end 0.60 points up at 2934.13 points. For every stock that rose, 2 fell. Turnover was 1.5 bil shares with a value of $1bil traded.
Realistically, Alcoa was probably the trigger for the profit taking and may not mean a landslide from here. `We have had some good gains so a consolidation is good if we are looking for higher levels later' a trader said. Shares of Ausgroup slumped to a low of 67.5 cents before steadying itself to end 3 cents down at 70 cents. The aggressive selling in early trading bewildered many and no adverse news has been heard. Lower crude oil prices also led to shares of Ezion and Falcon Energy slipping 1.5 and 1 cent at 82 and 81 cents respectively. Shares of Ramba were halted today pending an announcement which some suspect to be a private placement. Other issues that fell were Keppel Corp, Haw Par, TPV, UOB, China Fishery Group, HPL, Indoagric, SingTel and CapitaLand that eased between 2 and 15 cents.
On the balance, shares of Design Studio, Jardine C&C, SIA, Jardine Matheson, DBS, Olam, HL Asia and Wilmar rose between 2 and 36 cents.
==================
DJIA: 10663.99 +45.80
Nasdaq Composite: 2312.41 -4.76
It was a volatile session on Wall Street as the market grappled with a weak dollar, higher commodity prices and a selloff in technology shares ahead of the start of the quarterly reporting season, which began with Alcoa. The aluminium maker reported a profit of 1 cent per share, falling below expectations of 6 cents, from a loss of 28 cents per share a year ago; revenue however fell less than expected.
The major indices ended mixed, with the Dow Jones Industrial Average rising 0.43% and S&P 500 gained 0.17% to close at 1,146.98. Nasdaq composite ended lower, easing 0.21%.
Market focus will be on companies’ earnings guidance for 2010 during this quarterly earnings season as companies are expected to report outstanding YoY earnings growth in the fourth quarter of 2009 when comparing with the fourth quarter of 2008 which was the height of economic recession. On Tuesday, there are no results due for major Dow component stocks but prior to market opening, the government is expected to release the November trade balance, which is expected to have widened to US$34.8bil from US$32.9bil in October.
US light crude oil for February delivery further fell US$0.47 to settle at US$82.28 a barrel.
In Singapore today:
The market advance continued on Monday following a positive Wall Street close last Friday and an upbeat exports data from China which achieved outstanding trade figures in December 2009 as exports grew 17.7% from a year ago to break 13 months of declines. The STI rose 10.77 points to 2933.53. For every stock that fell, 2.6 rose. Turnover was 3.1bil shares with a value of $2.1bil traded.
Seasonal demand and recent favourable reports were a boost for the palm oil stocks. Shares of Wilmar, Golden Agric, IndoAgric, First Resources and Kencana Resources rose between 1 and 17 cents. Strong freight rates and the belief in trade growth boosted NOL 12 cents to $1.90. Hong Leong Asia rose 37 cents at $3.25 after a local broker issued a buy report with a target of $4.08. China Sports extended gains, adding 2.5 cents at 22.5 cents after a broker revised its price target to 35 cents when the company clinched an exclusive master distribution rights for FIFA collections in the PRC.
Other shares of Creative Technology, STX Panocean, DBS, UOL, Noble Group, Olam, NOL, City Developments, Ezra and HPL rose between 2 and 42 cents.
Expect market to consolidate today taking cues from the mixed overnight close on Wall Street and as market awaits fresh economic releases and quarterly earnings results of major US companies, including those of Intel and JP Morgan Chase this Thursday and Friday respectively.
========
Mid Day January 12. Aggressive selling in early trade bewildered many.
Wall Street closed modestly higher but signalled a pullback when bellweather Alcoa reported results that was below expectations. US index futures eased signalling a speed bump ahead while Alcoa fell in after hours trading.
The `Alcoa factor' was probably the excuse traders needed to lock in their profits after recent sessions of gains. A dealer noted that the correction may be shallow since ` a lot of people are still sidelined with cash'. The STI index recovered from its 2922.35 nadir to end 0.60 points up at 2934.13 points. For every stock that rose, 2 fell. Turnover was 1.5 bil shares with a value of $1bil traded.
Realistically, Alcoa was probably the trigger for the profit taking and may not mean a landslide from here. `We have had some good gains so a consolidation is good if we are looking for higher levels later' a trader said. Shares of Ausgroup slumped to a low of 67.5 cents before steadying itself to end 3 cents down at 70 cents. The aggressive selling in early trading bewildered many and no adverse news has been heard. Lower crude oil prices also led to shares of Ezion and Falcon Energy slipping 1.5 and 1 cent at 82 and 81 cents respectively. Shares of Ramba were halted today pending an announcement which some suspect to be a private placement. Other issues that fell were Keppel Corp, Haw Par, TPV, UOB, China Fishery Group, HPL, Indoagric, SingTel and CapitaLand that eased between 2 and 15 cents.
On the balance, shares of Design Studio, Jardine C&C, SIA, Jardine Matheson, DBS, Olam, HL Asia and Wilmar rose between 2 and 36 cents.
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Labels:
Market Update
Monday, January 11, 2010
11 Jan 10 : Risk Appetite is much stronger now
Pre-Market Open Commentary for 11 January 2010
DJIA: 10618.19 +11.33
Nasdaq Composite: 2317.17 +17.12
The US stock market staged a late advance on Friday led by technology shares, which propelled Nasdaq and assisted the broader market to recoup earlier losses as the market disregarded the surprisingly weak jobs report. Employers cut 85,000 jobs from their payroll in December although the market was expecting no change in payrolls but on a more positive note, November’s report was revised to show a gain of 4,000 jobs, instead of the reported loss of 11,000, breaking a 22-month streak of declines. Further, the unemployment rate held steady at 10%, in line with expectations.
For the week, all the major indices ended higher, with the Dow Jones Industrial Average advancing 0.32% and S&P 500 rose 1.06% to end at 1132.99. Nasdaq composite gained 0.38%.
For the weeks ahead, quarterly earnings reporting will dictate market sentiment. Starting this week, Alcoa will kick start the quarterly reporting on Monday while Intel and JP Morgan Chase will report on Thursday and Friday respectively. On the economic front, reports due this week include retail sales, trade gap, consumer sentiment and manufacturing.
US light crude oil for February delivery fell US$0.09 to settle at US$82.75 a barrel.
In Singapore today:
The usual caution in the Singapore market ahead of the US job data was noticeably absent on Friday. The STI ended modestly upbeat, rising 9.51 points to 2,922.76. For the week, the benchmark index ended 0.8% higher as market optimism into the new year prevailed.
China XLX had a bizarre spike to 90 cents before settling to a `normal' trading range between 60 and 70 cents. Traders here seem to be ever enamoured with S-chips that take the dual listing route. Following in the footsteps of Midas, China XLX, Epure and Z-Obee, Novo Group announced they were seeking to list in Hong Kong. The shares jumped over 20 per cent up before settling 4 cents up at 26 cents. `I suppose, it's just buy the rumour, sell the news' a dealer mused.
Financial One shares touched a high at 60.5 cents before settling at 60 cents on rumours that it was preparing to list its Asian operations in Taiwan. Broadway shares rose 8.5 cents at 74 cents on laggard play. A trader said the stock appeared undervalued relative to a Malaysian IPO that was listing at a price to earnings three times that of Broadway's. A broker had issued a buy note with a target of $1.01. An afternoon buy report on Hiap Hoe with a price target of 73 cents sent the stock 7 cents higher at 59 cents.
Expect the local bourse to advance taking cues from the positive Wall Street close last Friday. Sanguine views on the imminent fourth-quarter earnings season for local companies will further underpin market advances.
=======
Mid Day January 11. Asian markets bounced on positive lead.
The rally stayed intact as US stocks logged in a week of gains despite the disappointing jobs report on Friday. Instead of a job growth statistic, December saw another month of job loss while the unemployment rate stayed at 10 per cent. The CBOE volatility index slumped to its lowest level in over a year which augured well for risk taking. Asian markets bounced on that positive lead but dealers said the focus should shift to corporate earnings as it gets underway. The STI index rose 17.03 points at 2939.79 points. For every stock that fell about 3 rose. Turnover was 1.8bil shares with a value of $1.1bil traded.
Seasonal demand and recent favourable reports were a boost for the palm oil stocks. Shares of Wilmar, Golden Agric, IndoAgric, First Resources and Kencana Resources rose between 1 and 17 cents. Strong freight rates and the belief in trade growth boosted NOL 7 cents to $1.85.
Hong Leong Asia rose 29 cents at $3.17 after a local broker issued a buy report with a target of $4.08. China Sports extended gains adding 2 cents at 22 cents after a broker revised its price target to 35 cents following the company's clinching of the exclusive master distributions rights of FIFA collections in the PRC.
Other shares of Creative Technology, STX Panocean, DBS, UOL, Noble Group, Olam, NOL, City Developments, Ezra and HPL rose between 2 and 42 cents.
On the balance, shares of Jardine C&C, JMH, SIA, Hyflux, Haw Par, SIA Engineering, Cougar, Popular, Allgreen and Sats Services eased between half and 32 cents.
====================
Market close Jan 11.Continued strong investor appetite for equities
Continued strong invest or appetite for equities kept Asian markets buoyant today but dealers were concerned the focus should shift to corporate earnings once it gets underway. The STI index rose 10.77 points at 2933.53 points. For every stock that fell about 3 rose. Turnover was 3.1bil shares with a value of $2.07bil traded.
Seasonal demand and recent favourable reports were a boost for the palm oil stocks. Shares of Wilmar, Golden Agric, IndoAgric, First Resources and Kencana Resources rose between 1 and 17 cents. Strong freight rates and the belief in trade growth boosted NOL 12 cents to $1.90.
Hong Leong Asia rose 37 cents at $3.25 after a local broker issued a buy report with a target of $4.08. China Sports extended gains adding 2.5 cents at 22.5 cents after a broker revised its price target to 35 cents following the company's clinching of the exclusive master distributions rights of FIFA collections in the PRC. Other shares of Creative Technology, STX Panocean, DBS, UOL, Noble G roup, Olam, NOL, City Developments, Ezra and HPL rose between 2 and 42 cents.
On the balance, shares of Jardine C&C, JMH, SIA, Hyflux, Haw Par, SIA Engineering, Cougar, Popular, Allgreen and Sats Services eased between half and 32 cents.
DJIA: 10618.19 +11.33
Nasdaq Composite: 2317.17 +17.12
The US stock market staged a late advance on Friday led by technology shares, which propelled Nasdaq and assisted the broader market to recoup earlier losses as the market disregarded the surprisingly weak jobs report. Employers cut 85,000 jobs from their payroll in December although the market was expecting no change in payrolls but on a more positive note, November’s report was revised to show a gain of 4,000 jobs, instead of the reported loss of 11,000, breaking a 22-month streak of declines. Further, the unemployment rate held steady at 10%, in line with expectations.
For the week, all the major indices ended higher, with the Dow Jones Industrial Average advancing 0.32% and S&P 500 rose 1.06% to end at 1132.99. Nasdaq composite gained 0.38%.
For the weeks ahead, quarterly earnings reporting will dictate market sentiment. Starting this week, Alcoa will kick start the quarterly reporting on Monday while Intel and JP Morgan Chase will report on Thursday and Friday respectively. On the economic front, reports due this week include retail sales, trade gap, consumer sentiment and manufacturing.
US light crude oil for February delivery fell US$0.09 to settle at US$82.75 a barrel.
In Singapore today:
The usual caution in the Singapore market ahead of the US job data was noticeably absent on Friday. The STI ended modestly upbeat, rising 9.51 points to 2,922.76. For the week, the benchmark index ended 0.8% higher as market optimism into the new year prevailed.
China XLX had a bizarre spike to 90 cents before settling to a `normal' trading range between 60 and 70 cents. Traders here seem to be ever enamoured with S-chips that take the dual listing route. Following in the footsteps of Midas, China XLX, Epure and Z-Obee, Novo Group announced they were seeking to list in Hong Kong. The shares jumped over 20 per cent up before settling 4 cents up at 26 cents. `I suppose, it's just buy the rumour, sell the news' a dealer mused.
Financial One shares touched a high at 60.5 cents before settling at 60 cents on rumours that it was preparing to list its Asian operations in Taiwan. Broadway shares rose 8.5 cents at 74 cents on laggard play. A trader said the stock appeared undervalued relative to a Malaysian IPO that was listing at a price to earnings three times that of Broadway's. A broker had issued a buy note with a target of $1.01. An afternoon buy report on Hiap Hoe with a price target of 73 cents sent the stock 7 cents higher at 59 cents.
Expect the local bourse to advance taking cues from the positive Wall Street close last Friday. Sanguine views on the imminent fourth-quarter earnings season for local companies will further underpin market advances.
=======
Mid Day January 11. Asian markets bounced on positive lead.
The rally stayed intact as US stocks logged in a week of gains despite the disappointing jobs report on Friday. Instead of a job growth statistic, December saw another month of job loss while the unemployment rate stayed at 10 per cent. The CBOE volatility index slumped to its lowest level in over a year which augured well for risk taking. Asian markets bounced on that positive lead but dealers said the focus should shift to corporate earnings as it gets underway. The STI index rose 17.03 points at 2939.79 points. For every stock that fell about 3 rose. Turnover was 1.8bil shares with a value of $1.1bil traded.
Seasonal demand and recent favourable reports were a boost for the palm oil stocks. Shares of Wilmar, Golden Agric, IndoAgric, First Resources and Kencana Resources rose between 1 and 17 cents. Strong freight rates and the belief in trade growth boosted NOL 7 cents to $1.85.
Hong Leong Asia rose 29 cents at $3.17 after a local broker issued a buy report with a target of $4.08. China Sports extended gains adding 2 cents at 22 cents after a broker revised its price target to 35 cents following the company's clinching of the exclusive master distributions rights of FIFA collections in the PRC.
Other shares of Creative Technology, STX Panocean, DBS, UOL, Noble Group, Olam, NOL, City Developments, Ezra and HPL rose between 2 and 42 cents.
On the balance, shares of Jardine C&C, JMH, SIA, Hyflux, Haw Par, SIA Engineering, Cougar, Popular, Allgreen and Sats Services eased between half and 32 cents.
====================
Market close Jan 11.Continued strong investor appetite for equities
Continued strong invest or appetite for equities kept Asian markets buoyant today but dealers were concerned the focus should shift to corporate earnings once it gets underway. The STI index rose 10.77 points at 2933.53 points. For every stock that fell about 3 rose. Turnover was 3.1bil shares with a value of $2.07bil traded.
Seasonal demand and recent favourable reports were a boost for the palm oil stocks. Shares of Wilmar, Golden Agric, IndoAgric, First Resources and Kencana Resources rose between 1 and 17 cents. Strong freight rates and the belief in trade growth boosted NOL 12 cents to $1.90.
Hong Leong Asia rose 37 cents at $3.25 after a local broker issued a buy report with a target of $4.08. China Sports extended gains adding 2.5 cents at 22.5 cents after a broker revised its price target to 35 cents following the company's clinching of the exclusive master distributions rights of FIFA collections in the PRC. Other shares of Creative Technology, STX Panocean, DBS, UOL, Noble G roup, Olam, NOL, City Developments, Ezra and HPL rose between 2 and 42 cents.
On the balance, shares of Jardine C&C, JMH, SIA, Hyflux, Haw Par, SIA Engineering, Cougar, Popular, Allgreen and Sats Services eased between half and 32 cents.
Labels:
Market Update
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