Pre-Market Open Commentary for 26 February 2010
DJIA: 10321.03 -53.13
Nasdaq Composite: 2234.22 -1.68
US stocks ended with modest losses on Thursday following bigger selloffs in earlier trading led by downgrades by Standard & Poor’s and Moody’s on Greece’s debt ratings should the country fail to implement austerity measures to rein in deficit. Weak reports on the jobs market and factory orders further dampened sentiment, with the number of new claims for unemployment jumping last week to 496,000, worse-than-expectations of 460,000, from a revised 474,000 the previous week; claims have jumped 12% over the past two weeks due to the impact of severe winter storms on the east coast. In a separate report, durable goods orders rose 3% in January fueled by aircraft demand, ahead of expectations of a 1.5% increase, from a rise of 1.9% in December. However, orders excluding transportation came in worse-than-expected, falling 0.6% in January, against expectations of a rise of 1%, from an increase of 2% in December.
On the corporate front, Coca-Cola is looking to buy the North American operations of its largest bottler, Coca-Cola Enterprise (CCE) that will cut costs and provide it more control of its distribution. The multi-layer deal will result in Coca-Cola giving up its 34% stake in CCE worth about US$3.4bil and taking on US$8.9bil in debt.
All the major indices ended lower with the Dow Jones Industrial Average losing 0.51% while S&P 500 fell 0.21% to 1,102.93. Nasdaq composite dipped marginally by 0.08%.
Friday is a busy day for economic news with the release of the second reading on 4Q09 GDP growth, which is expected to remain unchanged from the first reading at 5.7%. The regional read on manufacturing, revised reading on consumer sentiment and existing home sales as well as the quarterly results of Berkshire Hathaway are also scheduled on the same day.
US light crude oil for April delivery fell US$1.83 to settle at US$78.17 a barrel.
In Singapore today:
Despite Wall Street’s overnight gains on Wednesday, led by Fed Chairman’s reassurance that interest rates will stay low for the foreseeable future, Greece’s mounting problems over debt and talks of downgrades by Standard & Poor’s and Moody’s on the country’s debt ratings rattled the Asian markets. Concerns over the weak US job market and weak housing sales further dampened market sentiment. The Hang Seng Index fell 0.33% while Nikkei fell 0.95%. The earlier advance failed to gain traction on the STI index as profit taking limited its upside. The STI index ratcheted off the 2774 high to end 12.99 points down at 2749.15 points. For every stock that rose, 1.7 fell. Turnover was 1.27bil shares with a value of $1.05bil traded.
Straits Asia's results came in below consensus and it did not provide updates on its FY10 contracts. At least one broker downgraded the stock to a sell with a price target of $1.73 on lower earnings projections. The stock eased 7 cents at $2.07. IndoAgri reported profits this morning that was in line with expectations. Stock fell 4 cents at $2.11 as traders opted for quick profits while awaiting more details from an analyst briefing this morning. New listing Cogent debut at 24 cents but subsequently eased to end at 22.5 cents, which was still 0.5 cents above its 22 cents offering.
Expect market to be range bound with downside bias today taking leads from the modestly weaker overnight close in Wall Street. Ahead of the weekend, investors are unlikely to take fresh positions in light of the lingering debt problems in Greece, which continues to dampen sentiment.
======
Mid Day February 26. Asian markets mostly higher.
Wall Street recovered from its earlier slump to close between 0.1 and 0.5 per cent lower on rekindled fears about the economy. One prominent banker expressed fears of a "double dip" scenario given that `there are huge potential negatives out there'. Asian markets were mostly higher, helped by a retracement in the dollar's strength. The STI index eased 3.70 points to 2745.45 points. Market breadth was flat at best. Turnover was 687mil shares with a value of $724mil traded.
Shares of Genting Singapore plummeted 3 cents at 88 cents on 163mil shares on rumours of a rights issue. Dealers said there was little to play for `now that the casino is open. Classic buy on rumours, sell on news'.
Straits Asia fell a second day, erasing 7 cents at $2.00 after a series of downgrades after the company reported a lower than expected set of results yesterday. Recent ipo Cogent fell 1 cent at 21.5 cents as traders regurgitated their positions when the stock fell below its 22 cents ipo level. Other shares that fell were Jardine C&C, Jardine Matheson, UOB, Hyflux, SParkway, Olam, Keppel Land, UOL and Fortune REIT eased between 2 and 72 cents.
China Environment rose 3 cents at 30 cents after the company announced results that comforted investors. The stock has plunged in recent weeks on rumours of accounting problems. A dealer said the higher price was due to `re-stocking' by those who sold earlier amid talks that company may soon announce contract wins. Z-Obee rose 1.5 cent at 36 cents; ahead of its dual-listing ( the Hong Kong ipo price of Singapore equivalent of 32.5 cents) on Monday. Others like Great Eastern Holdings, APB, F&N, DBS, Semb Corp, Keppel Corp and Semb Corp rose between 2 and 20 cents.
=====
Market close Feb 26. Stocks close off day's high
Asian markets were mainly higher today, h elped by a retracement in the dollar's strength, but still closed off the day‚s high on profit taking ahead of the weekend and continued uncertainty as to whether the world will see a double dip recession. The STI index eased 1.71 points to 2750.86 points. Market breadth was flat at best. Turnover was 1.28bil shares with a value of $1.45bil traded.
Shares of Genting Singapore plummeted 1.5 cents at 89.5 cents on 235mil shares on rumours of a rights issue. Dealers said there was little to play for `now that the casino is open. Classic buy on rumours, sell on news'.
Straits Asia fell a second day, erasing 5 cents at $2.02 after a series of downgrades after the company reported a lower than expected set of results yesterday.
Yesterday‚s IPO debutante, Cogent fell 1.5 cent at 21 cents as traders regurgitated their positions when the stock fell below its 22 cents offer price.
Other shares that fell were Jardine C&C, Jardine Matheson, UOB, Sp Land, Ve n ture and City Dev, eased between 6 and 72 cents.
China Environment rose 7.5 cents at 34.5 cents after the company announced results that comforted investors. The stock has plunged in recent weeks on rumours of accounting problems. A dealer said the higher price was due to `re-stocking' by those who sold earlier amid talks that company may soon announce contract wins.
Z-Obee rose 4.5 cent at 39 cents; ahead of its dual-listing ( the Hong Kong ipo price of Singapore equivalent of 32.5 cents) on Monday. Others like APB, Great Eastern, and Elec, rose between 16 and 70 cents.
Showing newest 18 of 27 posts from February 2010. Show older posts
Showing newest 18 of 27 posts from February 2010. Show older posts
Friday, February 26, 2010
The Commandants of Foreign Exchange Currency Trading
I failed all :)
But these are just jokes anyway :)
====
1. If you cannot quickly recite the daily, weekly and monthly support & resistance values for any pair you're planning to trade with an EA, you shouldn't be trading.
2. If you can't manually calculate the currency exchange conversion values for any pair you're planning to trade with an EA, you shouldn't be trading.
3. If you cannot read and understand the code of an EA you're planning to trade with, you shouldn't be trading with it.
4. If you haven't learned to successfully trade manually for at least a year or two, you shouldn't be mechanically trading trading with an EA.
5. 99% of all EA's are destined to fail. Some sooner, some later.
6. Technical indicators don't work. They're a big fib to appease retail traders.
7. Knowledge of only price action, a few key patterns, and support/resistance is necessary to trade.
8. If you cannot quickly name the 10 key news events and their dates/times during the upcoming month, you shouldn't be trading.
9. You're worst enemy in trading is your broker.
10. Broker Pip spreads are only a portion of your trade cost. You are regularly gouged by slippage costs. If your EA has a default slippage value of 3, guess what your typical slippage will be? If it's set to 4, guess what your typical slippage will be?
11. The only EA's that will be profitable are the ones that are cleverly designed to out-fox the brokers and other insideous market forces by resorting to tricks, gimmicks, and smoke & mirrors tactics.
12. Any EA's freely available publicly will lose your trading account.
13. 95% of "traders" on public forums are as uneducated as you are about trading. Be wary of free advice.
14. The average trader who is persistent and lucky enough to eventually become a profitable trader regularly will first lose $20K - $30K in the markets and spend another $10K on books, lessons, eBooks, subscriptions and software. The rest will perish somewhere along that path.
15. The amount of time you are "exposed" in the market through active trading, either manually or mechanically, is inversely proportional to your profitability success rate.
16. Two high probability trades yielding 15 pips each and using a lot size of 50 is all you need each week.
But these are just jokes anyway :)
====
1. If you cannot quickly recite the daily, weekly and monthly support & resistance values for any pair you're planning to trade with an EA, you shouldn't be trading.
2. If you can't manually calculate the currency exchange conversion values for any pair you're planning to trade with an EA, you shouldn't be trading.
3. If you cannot read and understand the code of an EA you're planning to trade with, you shouldn't be trading with it.
4. If you haven't learned to successfully trade manually for at least a year or two, you shouldn't be mechanically trading trading with an EA.
5. 99% of all EA's are destined to fail. Some sooner, some later.
6. Technical indicators don't work. They're a big fib to appease retail traders.
7. Knowledge of only price action, a few key patterns, and support/resistance is necessary to trade.
8. If you cannot quickly name the 10 key news events and their dates/times during the upcoming month, you shouldn't be trading.
9. You're worst enemy in trading is your broker.
10. Broker Pip spreads are only a portion of your trade cost. You are regularly gouged by slippage costs. If your EA has a default slippage value of 3, guess what your typical slippage will be? If it's set to 4, guess what your typical slippage will be?
11. The only EA's that will be profitable are the ones that are cleverly designed to out-fox the brokers and other insideous market forces by resorting to tricks, gimmicks, and smoke & mirrors tactics.
12. Any EA's freely available publicly will lose your trading account.
13. 95% of "traders" on public forums are as uneducated as you are about trading. Be wary of free advice.
14. The average trader who is persistent and lucky enough to eventually become a profitable trader regularly will first lose $20K - $30K in the markets and spend another $10K on books, lessons, eBooks, subscriptions and software. The rest will perish somewhere along that path.
15. The amount of time you are "exposed" in the market through active trading, either manually or mechanically, is inversely proportional to your profitability success rate.
16. Two high probability trades yielding 15 pips each and using a lot size of 50 is all you need each week.
Labels:
FX Trading
Thursday, February 25, 2010
25 Feb 10 : IPO not so cool
Pre-Market Open Commentary for 25 February 2010
DJIA: 10374.16 +91.75
Nasdaq Composite: 2235.9 +22.46
Wall Street was clued into Federal Reserve Chairman Ben Bernanke’s statement overnight, giving his semi-annual assessment of the economy. Mr Bernanke reassured that low interest rates were here to stay for some time, and that last week's move to raise the rate for emergency loans to banks was not indicative of more changes to come.
This led to a relief rally of sorts on Wall Street, but lower than expected new home sales reined in any undue euphoria. New home sales fell 11 per cent to a 309,000 annual unit rate from 348,000 in the previous month. Market consensus was going for an increase to a 354,000 annual unit rate.
In other news, there were reports Citigroup could be looking to sell its hedge fund business.
A continued rise in energy demand, coupled with a fall in inventory levels, helped push crude prices up. Crude for April delivery added US$1.14 to US$80 per barrel.
In Singapore today:
Investor sentiment remained cautious yesterday in the second session and though the STI index closed off the day’s lows, there was noticeable selling towards the close, resulting in the benchmark STI closing 20.41 points down at 2762.14 points. For every stock that fell, about 1.2 rose. Turnover was 1.2bil shares with a value of $1.2bil traded.
Dealers said trading was unusually choppy the last two days and could be linked to the rollover of index futures contract today.
We think there could be further correction in the property counters today as the Hong Kong government’s move yesterday to raise the stamp duty on luxury property sales, in a targeted move to prevent a property bubble, could reverberate into the local market here where the Singapore government has also stated it is watching the situation. The HK government further warned that more measures could follow if this was deemed to be insufficient, and that it would be adding more to supply as well.
On the corporate front, shares of Broadway rose 6.5 cents at 92 cents after the company announced a dividend of 3 cents alongside its good results. Noble Group bounced from its $3.03 nadir to close down 1 cent at $3.11 after reporting results that were in line with expectations.
CWT shares rose 3 cents at 91.5 cents on rumours that it may announce a special dividend with its results.
======
Mid Day February 25. STI's upside limited by profit taking.
Asian markets were more obsessed with the falling Euro dollars than Fed Chief Bernanke's speech last night that sparked a Wall Street rally. Federal Reserve Chairman Bernanke pledged to keep interest rates low for the foreseeable future, that temporarily pulled the US dollar lower. The lower dollar helped lift stocks as risk appetite returned. Twelve hours later, the Euro dollars plummeted towards the lows of 2010 as fears about Greece got rekindled. The US dollar rose as traders squared positions.
Traders said volatility in the last few sessions lasting into (the first few days) the new month could be due to the expiration of current month futures contracts. The advance failed to gain traction on the STI index as profit taking limited its upside. The STI index ratcheted off the 2774 high to end 16.82 points down at 2745.23 points. For every stock that rose, 2 fell. Turnover was 796mil shares with a value of $586mil traded.
Straits Asia's results came in below consensus and it did not provide updates on its FY10 contracts. At least one broker downgraded the stock to a sell with a price target of $1.73 on lower earnings projections. The stock eased 7 cents at $2.07. Indoagri reported profits this morning that was in line with expectations. Stock fell 4 cents at $2.11 as traders opted for quick profits while awaiting more details from an analyst briefing this morning. Ezion shares rose half cent at 74.5 cents after its strong results came in above expectations. Traders said the stock could have another renewed upmove if it announces a contract win from the phase II of the Gorgon project. New listing Cogent debut at 24 cents but subsequently eased to end at 23 cents . This was still 1 cents above its 22 cents offering.
Shares of Jardine C&C, Jardine Matheson, Cosmosteel, SGX, Parkway, SingTel, Keppel Corp, SIA and Kim Eng fell between 2 and 26 cents.
====
Market close Feb 25. Profit taking caps any attempt to rally
An attempt to rally in the S ingapore bourse failed to take off as profit taking limited its upside. The STI index ratcheted off the 2774 high to end 12.99 points down at 2749.15 points. For every stock that rose, nearly 2 fell. Turnover was 1.26bil shares with a value of $1.05bil traded.
Straits Asia's results came in below consensus and the group also did not provide updates on its FY10 contracts. At least one broker downgraded the stock to a sell with a price target of $1.73 on lower earnings projections. The stock eased 7 cents at $2.07.
Indoagri reported profits this morning that was in line with expectations. Stock fell 4 cents at $2.11 as traders opted for quick profits while awaiting more details from an analyst briefing this morning. Ezion shares gained 1 cent at 75 cents after its strong results came in above expectations. Traders said the stock could have another renewed move upwards, if it announces a contract win from the phase II of the Gorgon project.
New listing Co g ent made a debut at 24 cents but subsequently eased to end at 22.5 cents. This was still 0.5 cents above its 22 cents offering.
Shares of Jardine C&C, STX Panocean, JSH, and DBS, fell between 4 and 24 cents.
DJIA: 10374.16 +91.75
Nasdaq Composite: 2235.9 +22.46
Wall Street was clued into Federal Reserve Chairman Ben Bernanke’s statement overnight, giving his semi-annual assessment of the economy. Mr Bernanke reassured that low interest rates were here to stay for some time, and that last week's move to raise the rate for emergency loans to banks was not indicative of more changes to come.
This led to a relief rally of sorts on Wall Street, but lower than expected new home sales reined in any undue euphoria. New home sales fell 11 per cent to a 309,000 annual unit rate from 348,000 in the previous month. Market consensus was going for an increase to a 354,000 annual unit rate.
In other news, there were reports Citigroup could be looking to sell its hedge fund business.
A continued rise in energy demand, coupled with a fall in inventory levels, helped push crude prices up. Crude for April delivery added US$1.14 to US$80 per barrel.
In Singapore today:
Investor sentiment remained cautious yesterday in the second session and though the STI index closed off the day’s lows, there was noticeable selling towards the close, resulting in the benchmark STI closing 20.41 points down at 2762.14 points. For every stock that fell, about 1.2 rose. Turnover was 1.2bil shares with a value of $1.2bil traded.
Dealers said trading was unusually choppy the last two days and could be linked to the rollover of index futures contract today.
We think there could be further correction in the property counters today as the Hong Kong government’s move yesterday to raise the stamp duty on luxury property sales, in a targeted move to prevent a property bubble, could reverberate into the local market here where the Singapore government has also stated it is watching the situation. The HK government further warned that more measures could follow if this was deemed to be insufficient, and that it would be adding more to supply as well.
On the corporate front, shares of Broadway rose 6.5 cents at 92 cents after the company announced a dividend of 3 cents alongside its good results. Noble Group bounced from its $3.03 nadir to close down 1 cent at $3.11 after reporting results that were in line with expectations.
CWT shares rose 3 cents at 91.5 cents on rumours that it may announce a special dividend with its results.
======
Mid Day February 25. STI's upside limited by profit taking.
Asian markets were more obsessed with the falling Euro dollars than Fed Chief Bernanke's speech last night that sparked a Wall Street rally. Federal Reserve Chairman Bernanke pledged to keep interest rates low for the foreseeable future, that temporarily pulled the US dollar lower. The lower dollar helped lift stocks as risk appetite returned. Twelve hours later, the Euro dollars plummeted towards the lows of 2010 as fears about Greece got rekindled. The US dollar rose as traders squared positions.
Traders said volatility in the last few sessions lasting into (the first few days) the new month could be due to the expiration of current month futures contracts. The advance failed to gain traction on the STI index as profit taking limited its upside. The STI index ratcheted off the 2774 high to end 16.82 points down at 2745.23 points. For every stock that rose, 2 fell. Turnover was 796mil shares with a value of $586mil traded.
Straits Asia's results came in below consensus and it did not provide updates on its FY10 contracts. At least one broker downgraded the stock to a sell with a price target of $1.73 on lower earnings projections. The stock eased 7 cents at $2.07. Indoagri reported profits this morning that was in line with expectations. Stock fell 4 cents at $2.11 as traders opted for quick profits while awaiting more details from an analyst briefing this morning. Ezion shares rose half cent at 74.5 cents after its strong results came in above expectations. Traders said the stock could have another renewed upmove if it announces a contract win from the phase II of the Gorgon project. New listing Cogent debut at 24 cents but subsequently eased to end at 23 cents . This was still 1 cents above its 22 cents offering.
Shares of Jardine C&C, Jardine Matheson, Cosmosteel, SGX, Parkway, SingTel, Keppel Corp, SIA and Kim Eng fell between 2 and 26 cents.
====
Market close Feb 25. Profit taking caps any attempt to rally
An attempt to rally in the S ingapore bourse failed to take off as profit taking limited its upside. The STI index ratcheted off the 2774 high to end 12.99 points down at 2749.15 points. For every stock that rose, nearly 2 fell. Turnover was 1.26bil shares with a value of $1.05bil traded.
Straits Asia's results came in below consensus and the group also did not provide updates on its FY10 contracts. At least one broker downgraded the stock to a sell with a price target of $1.73 on lower earnings projections. The stock eased 7 cents at $2.07.
Indoagri reported profits this morning that was in line with expectations. Stock fell 4 cents at $2.11 as traders opted for quick profits while awaiting more details from an analyst briefing this morning. Ezion shares gained 1 cent at 75 cents after its strong results came in above expectations. Traders said the stock could have another renewed move upwards, if it announces a contract win from the phase II of the Gorgon project.
New listing Co g ent made a debut at 24 cents but subsequently eased to end at 22.5 cents. This was still 0.5 cents above its 22 cents offering.
Shares of Jardine C&C, STX Panocean, JSH, and DBS, fell between 4 and 24 cents.
Labels:
Market Update
Conference Board Consumer Confidence for Feb 2010
Consumer Confidence
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Yesterday's Conference Board Consumer Confidence number for February seems to have been lost in the news flow, but with two notable exceptions it was the lowest on record (the series began in 1967,1985=100). The seven months from October 2008 until April 2009 were all weaker--in order beginning in October: 38.8, 44.7, 38.6, 37.4, 25.3, 26.9, and 40.8. Job losses averaged 685,000 per month and included the highest number lost for the period at 779,000 in January of last year. In December 1974 the Conference Board also recorded a lower confidence number at 43.2. That month the economy shed 602,000 jobs, also towards the end of a severe recession. Job losses continued to be heavy for four more months into 1975.
The puzzle in this February's number is that the worst of the jobs losses are well behind the economy. Some commentators have blamed the severe winter weather in much of the country for depressing spirits, but it snows every year. More blame can probably be placed on the lack of job creation this time around. In 1974 from the peak of job losses in December the economy had begun to produce jobs only five months later in May 1975. June 1975 recorded another loss, but from July on the economy averaged 250,000 new jobs per month for the rest of the year. It has already been more than a year from the peak job loss in this recession last January. The extreme duration more than anything else is probably what is weighing on consumer sentiment.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Yesterday's Conference Board Consumer Confidence number for February seems to have been lost in the news flow, but with two notable exceptions it was the lowest on record (the series began in 1967,1985=100). The seven months from October 2008 until April 2009 were all weaker--in order beginning in October: 38.8, 44.7, 38.6, 37.4, 25.3, 26.9, and 40.8. Job losses averaged 685,000 per month and included the highest number lost for the period at 779,000 in January of last year. In December 1974 the Conference Board also recorded a lower confidence number at 43.2. That month the economy shed 602,000 jobs, also towards the end of a severe recession. Job losses continued to be heavy for four more months into 1975.
The puzzle in this February's number is that the worst of the jobs losses are well behind the economy. Some commentators have blamed the severe winter weather in much of the country for depressing spirits, but it snows every year. More blame can probably be placed on the lack of job creation this time around. In 1974 from the peak of job losses in December the economy had begun to produce jobs only five months later in May 1975. June 1975 recorded another loss, but from July on the economy averaged 250,000 new jobs per month for the rest of the year. It has already been more than a year from the peak job loss in this recession last January. The extreme duration more than anything else is probably what is weighing on consumer sentiment.
Labels:
FX Trading
Wednesday, February 24, 2010
24 Feb 10 : Weird Feeling about the Markets
Pre-Market Open Commentary for 24 February 2010
DJIA: 10282.41 -100.97
Nasdaq Composite: 2213.44 -28.59
US stocks tumbled on Tuesday following a plunge in US consumer confidence by more than 10 points in February, reflecting investors’ growing pessimism about the strength of the economic recovery as consumer spending fuels about two-thirds of US economic growth. The Consumer Confidence Index declined to 46.0 in February, worse-than-expectations of 54.8, from a revised 56.5 in January. Separately, the home price index fell 3.1% YoY in December, in line with expectations, from a YoY decline of 5.3% in November, but rose 0.3% from November, implying that the housing market is continuing to recover.
The corporate results of retailers were largely ahead of expectations. Home Depot returned to a profit in 4QFY09, which was better than expectations, from losses in 4QFY08 but issued a cautious 2010 outlook amid the still-fragile economic recovery. Target and Sears also reported higher-than-expected quarterly profits.
All the major indices ended lower with the Dow Jones Industrial Average losing 0.97% while S&P 500 fell 1.21% to 1,094.60. Nasdaq composite lost 1.28%.
Expect market sentiment to take leads from the highly-anticipated congressional testimony by the US Fed Chairman over Wednesday and Thursday. The Chairman is expected to discuss the economy and monetary policy and more importantly, may provide indications on the central bank’s plans to close out some of the emergency programs put in place during the height of the financial crisis. The economic reading on new home sales for January is also scheduled on Wednesday.
US light crude oil for April delivery fell US$1.45 to settle at US$78.85 a barrel.
In Singapore today:
Most of the regional bourses rallied on Tuesday as concerns over sovereign debt woes in Greece eased. Increasing hope that US Fed Chairman will keep interest rates at the current low levels and news of Dubai injecting fresh funds into heavily indebted Dubai World further lifted market sentiment. The Hang Seng index reversed from a 250 points decline to close 245.73 points or 1.2% higher, prompted by talks of goodies to be announced in tomorrow's budget speech. This is turned lifted most stocks in the local bourse from their nadir lows. The Taiex index also gained 0.49% and Kospi edged up 0.11%. The STI closed 25.09 points, or 0.91%, to 2782.55, led by local banks. For every stock that fell, 1.74 rose. Turnover remained light with 1.19bil shares with a value of $1.27bil traded.
Shares of Genting fell 1.5 cent at 95.5 cents after failing to breach the 98 cents resistance point. It earlier touched a low at 93.5 cents prompted by talks of short selling. Recently listed Sin Heng fell 2 cents at 25.5 cents but recovered to end 1 cent down at 26.5 cents. Traders wondered if the IPO issue manager had started to buy back shares as part of the stabilisation program. Resource stocks were off the lows of the session with shares of Wilmar, Noble Group and Olam rising between 1 and 8 cents.
Expect market to consolidate taking cues from the overnight tumble in Wall Street and as investors await the highly anticipated congressional testimony by the US Fed Chairman on Wednesday and Thursday.
========
February 24. STI lower at mid day
Asian stocks started lower dented by the po or US consumer confidence data that took Wall Street 1 per cent lower. Traders who took up stocks late yesterday probably threw them out again at the open bell on knee jerk selling. It wasn't all gloom and doom as a brighter Shanghai open and the subsequent recovery in Hong Kong's Hang Seng index inspired some bargain hunting and prompted some short covering. The STI index closed 19.12 points down at 2763.43 points but was off its 2749.4 points nadir. For every stock that rose about 1.3 fell. Turnover was 560mil shares with a value of $599mil traded.
Dealers said trading yesterday and today were unusually choppy and could be linked to the rollover of index futures contract tomorrow. `Just when you think the market was going down, it about turns' a dealer mused. Shares of Broadway rose 4 cents at 89.5 cents after the company announced a 3 cents dividend payout alongside its good results. Noble Group bounced from its $3.03 nadir to end unchanged at $3.12 after reporting results that were in line with expectations. CWT shares rose 3 cents at 915 cents on rumours that it may announce a special dividend with its results. Other shares that rose were Jardine C&C, Haw Par, IFS, SembMarine, UE, SATs Services and NOL that added between 2 and 58 cents.
On the balance, shares of Jardine Matheson, DBS, UOB, SGX, OCBC Bank, City Developments and SPH eased between 2 and $1.14.
======
Market close Feb 24. Investor sentiment still cautious in the second session
Investor se ntiment remained cautious in the second session and though the STI index closed off the day‚s lows, there was noticeable selling towards the close, resulting in the benchmark STI closing 20.41 points down at 2762.14 points. For every stock that fell, about 1.2 rose. Turnover was 1.2bil shares with a value of $1.2bil traded.
Dealers said trading yesterday and today were unusually choppy and could be linked to the rollover of index futures contract tomorrow. `Just when you think the market was going down, it about turns' a dealer mused.
Shares of Broadway rose 6.5 cents at 92 cents after the company announced a dividend of 3 cents alongside its good results. Noble Group bounced from its $3.03 nadir to close down 1 cent at $3.11 after reporting results that were in line with expectations.
CWT shares rose 3 cents at 91.5 cents on rumours that it may announce a special dividend with its results. Other shares that rose were Jardine C&C, HL Asia, SembMarine, H aw Tar, UOI and Indo Agri, that added between 5 and 46 cents.
On the balance, shares of Jardine Matheson, DBS, UOB, SGX, and Great Eastern, eased between 8 and 68 cents.
DJIA: 10282.41 -100.97
Nasdaq Composite: 2213.44 -28.59
US stocks tumbled on Tuesday following a plunge in US consumer confidence by more than 10 points in February, reflecting investors’ growing pessimism about the strength of the economic recovery as consumer spending fuels about two-thirds of US economic growth. The Consumer Confidence Index declined to 46.0 in February, worse-than-expectations of 54.8, from a revised 56.5 in January. Separately, the home price index fell 3.1% YoY in December, in line with expectations, from a YoY decline of 5.3% in November, but rose 0.3% from November, implying that the housing market is continuing to recover.
The corporate results of retailers were largely ahead of expectations. Home Depot returned to a profit in 4QFY09, which was better than expectations, from losses in 4QFY08 but issued a cautious 2010 outlook amid the still-fragile economic recovery. Target and Sears also reported higher-than-expected quarterly profits.
All the major indices ended lower with the Dow Jones Industrial Average losing 0.97% while S&P 500 fell 1.21% to 1,094.60. Nasdaq composite lost 1.28%.
Expect market sentiment to take leads from the highly-anticipated congressional testimony by the US Fed Chairman over Wednesday and Thursday. The Chairman is expected to discuss the economy and monetary policy and more importantly, may provide indications on the central bank’s plans to close out some of the emergency programs put in place during the height of the financial crisis. The economic reading on new home sales for January is also scheduled on Wednesday.
US light crude oil for April delivery fell US$1.45 to settle at US$78.85 a barrel.
In Singapore today:
Most of the regional bourses rallied on Tuesday as concerns over sovereign debt woes in Greece eased. Increasing hope that US Fed Chairman will keep interest rates at the current low levels and news of Dubai injecting fresh funds into heavily indebted Dubai World further lifted market sentiment. The Hang Seng index reversed from a 250 points decline to close 245.73 points or 1.2% higher, prompted by talks of goodies to be announced in tomorrow's budget speech. This is turned lifted most stocks in the local bourse from their nadir lows. The Taiex index also gained 0.49% and Kospi edged up 0.11%. The STI closed 25.09 points, or 0.91%, to 2782.55, led by local banks. For every stock that fell, 1.74 rose. Turnover remained light with 1.19bil shares with a value of $1.27bil traded.
Shares of Genting fell 1.5 cent at 95.5 cents after failing to breach the 98 cents resistance point. It earlier touched a low at 93.5 cents prompted by talks of short selling. Recently listed Sin Heng fell 2 cents at 25.5 cents but recovered to end 1 cent down at 26.5 cents. Traders wondered if the IPO issue manager had started to buy back shares as part of the stabilisation program. Resource stocks were off the lows of the session with shares of Wilmar, Noble Group and Olam rising between 1 and 8 cents.
Expect market to consolidate taking cues from the overnight tumble in Wall Street and as investors await the highly anticipated congressional testimony by the US Fed Chairman on Wednesday and Thursday.
========
February 24. STI lower at mid day
Asian stocks started lower dented by the po or US consumer confidence data that took Wall Street 1 per cent lower. Traders who took up stocks late yesterday probably threw them out again at the open bell on knee jerk selling. It wasn't all gloom and doom as a brighter Shanghai open and the subsequent recovery in Hong Kong's Hang Seng index inspired some bargain hunting and prompted some short covering. The STI index closed 19.12 points down at 2763.43 points but was off its 2749.4 points nadir. For every stock that rose about 1.3 fell. Turnover was 560mil shares with a value of $599mil traded.
Dealers said trading yesterday and today were unusually choppy and could be linked to the rollover of index futures contract tomorrow. `Just when you think the market was going down, it about turns' a dealer mused. Shares of Broadway rose 4 cents at 89.5 cents after the company announced a 3 cents dividend payout alongside its good results. Noble Group bounced from its $3.03 nadir to end unchanged at $3.12 after reporting results that were in line with expectations. CWT shares rose 3 cents at 915 cents on rumours that it may announce a special dividend with its results. Other shares that rose were Jardine C&C, Haw Par, IFS, SembMarine, UE, SATs Services and NOL that added between 2 and 58 cents.
On the balance, shares of Jardine Matheson, DBS, UOB, SGX, OCBC Bank, City Developments and SPH eased between 2 and $1.14.
======
Market close Feb 24. Investor sentiment still cautious in the second session
Investor se ntiment remained cautious in the second session and though the STI index closed off the day‚s lows, there was noticeable selling towards the close, resulting in the benchmark STI closing 20.41 points down at 2762.14 points. For every stock that fell, about 1.2 rose. Turnover was 1.2bil shares with a value of $1.2bil traded.
Dealers said trading yesterday and today were unusually choppy and could be linked to the rollover of index futures contract tomorrow. `Just when you think the market was going down, it about turns' a dealer mused.
Shares of Broadway rose 6.5 cents at 92 cents after the company announced a dividend of 3 cents alongside its good results. Noble Group bounced from its $3.03 nadir to close down 1 cent at $3.11 after reporting results that were in line with expectations.
CWT shares rose 3 cents at 91.5 cents on rumours that it may announce a special dividend with its results. Other shares that rose were Jardine C&C, HL Asia, SembMarine, H aw Tar, UOI and Indo Agri, that added between 5 and 46 cents.
On the balance, shares of Jardine Matheson, DBS, UOB, SGX, and Great Eastern, eased between 8 and 68 cents.
Labels:
Market Update
Tuesday, February 23, 2010
23 Feb 10 : Got into Yanlord again
The gambler in me strikes again. Got into Yanlord (6 lots) at $1.76. Volume is still lower than Moving Average Volume but higher than the past few days.
Pray again :)
============
Pre-Market Open Commentary for 23 February 2010
DJIA: 10383.38 -18.97
Nasdaq Composite: 2242.03 -1.84
Following four-straight consecutive trading sessions of gains, US stocks ended a choppy Monday marginally lower as investors await the highly anticipated congressional testimony by the US Fed Chairman on Wednesday. Meanwhile, investors weighed corporate results, President Obama’s healthcare proposal and a corporate acquisition deal. Lowe’s reported higher-than-expected quarterly earnings and revenue and was upbeat that sales will continue to rise in the current financial year. Investors also took comfort from signs that regulatory changes proposed in Washington will be milder than feared, including provisions in President Obama’s health care reform plan. The 10-year plan of close to US$1 trillion plan that would cover more than 31 mil Americans currently not insured without adding to the budget deficit. On the corporate scene, Schlumberger is buying oil driller Smith International in an all-stock deal worth US$11 bil, which has already been approved by the board of directors of both companies.
All the major indices ended lower with the Dow Jones Industrial Average losing 0.18% while S&P 500 fell 0.10% to 1,108.01. Nasdaq composite dipped 0.08%.
Market sentiment will also take leads from a bevy of economic readings due this week. On Tuesday, reports are due on the housing market and Consumer Confidence Index. The corporate results of several retailers including Barnes and Noble, Home Depot, Macy’s and Target are also scheduled on the same day.
US light crude oil for March delivery rose US$0.35 to settle at US$80.16 a barrel.
In Singapore today:
It was a slow trading Monday on the local bourse as the market awaits the Budget announcement. The exuberance in the other regional markets did not catch on in the local market. The STI added 18 points but slid back to end a mere 0.32 points higher at 2757.46. In contrasts, Hang Seng gained 2.4%, Nikkei was up 2.7% and Kospi Index rose 2.0%, after the market’s knee-jerk reaction last week to the hike in discount rate gave way to a more measured take since the Fed’s move will not impact borrowing costs for consumers and businesses. Traders now saw the rate hike as confidence in the economic recovery. Fears about a meltdown in the Chinese stock markets abated when the Shanghai Composite re-opened yesterday after its week long close for the Chinese New Year holidays. The Shanghai market ended 0.5% lower in reaction to the latest PRC measures to cool the credit market. For every stock that fell, 1.6 rose. Turnover was light with 1.12bil shares with a value of $1.21bil traded.
The Singapore Government announced last Friday after the market closed further measures to cool the property sector. A seller's stamp duty and a lower loan-to-value limit of 80 per cent for all housing loans was largely seen as symbolic and targeted at speculators. Nonetheless, property counters fell as sentiments weighed on the sector. Shares of City Dev, CapitaLand, Wing Tai, Ho Bee and Keppel Land fell between 7 and 52 cents.
Expect market sentiment to be subdued and the local bourse to consolidate taking cues from the weaker overnight close on Wall Street and as investors await the highly anticipated congressional testimony by the US Fed Chairman on Wednesday and Thursday.
======
Mid Day February 23. Stocks recovered after spike in the Hang Seng Index.
Asian markets wobbled and tracked a lower close on Wall Street as traders mused on the next FED move. While general consensus point to a rate hike(FED fund rate) at the end of the year(at the earliest), some traders now think they may soon end its program to buy mortgage back securities at the end of the quarter. Stocks worked lower when the Shanghai Composite index shed over 1.4 per cent in early trading but managed to claw back from their nadirs. The STI index rose 3.73 points at 2761.19 points after a spike in the Hang Seng index prompted a short cover bounce here. Market breadth improved over the session to end almost flat. Turnover was 677mil shares with a value of 637mil traded.
Traders again moved to limit their exposure to the market as the rebound reached some resistance levels. A weak open in the Chinese indices had traders playing from the short side. The Hang Seng index reversed from a 250 points decline and about turned to a 250 points gain, prompted by talks of goodies to be announced in tomorrow's budget speech. This in turned lifted most stocks here from their nadir lows. Shares of Genting fell 1 cent at 96 cents after failing to breach the 98 cents resistance point. It earlier touched a low at 93.5 cents prompted by talks of short selling. Recent listing Sin Heng fell 2 cents at 25.5 cents but recovered to end 1 cent down at 26.5 cents. Traders wondered if the ipo issue manager had started to buy back shares as part of the stabilisation program.
Resource stocks were off the lows of the session with shares of Wilmar, Noble Group and Olam rising between 1 and 8 cents. Cosco Corp fell 4 cents at $1.24 despite reporting earnings to were largely in line. Traders said the spectre of further order cancellations appeared to weigh on the stock.
On the balance, Semb Marine rose 21 cents at $3.62 with its results beating street consensus. One analyst believes the company is on the verge of announcing several sizeable orders in the future. Others like WBL Corp, Cerebos, Jardine C&C, AP Oil and ARA rose between 2 and 54 cents
========
Market close Feb 23. STI rises towards the close
The local bourse got a boost from the pos itive US futures and also Hang Seng‚s higher close to overcome earlier lethargy. Stocks had inched lower when the Shanghai Composite index shed over 1.4 per cent in early trading but managed to claw back from their nadirs. The STI index closed 25.09 points higher at 2782.55 points after a spike in the Hang Seng index prompted a short cover bounce here. Market breadth improved over the session to close with 268 gainers against 154 losers. Turnover was 1.19bil shares with a value of 1.26bil traded.
Traders again moved to limit their exposure to the market as the rebound reached some resistance levels. The Hang Seng index reversed from a 250 points decline and about turned, prompted by talks of goodies to be announced in tomorrow's budget speech. This is turned led most stocks here from their nadir lows. Shares of Genting fell 1.5 cent at 95.5 cents after failing to breach the 98 cents resistance point. It earlier touched a low at 93.5 cents prompted by talks of short s e lling.
Recent listing Sin Heng fell 2 cents at 25.5 cents but recovered to end 1 cent down at 26.5 cents. Traders wondered if the ipo issue manager had started to buy back shares as part of the stabilisation program.
Resource stocks were off the lows of the session with shares of Wilmar, Noble Group and Olam rising between 1 and 8 cents. Cosco Corp fell 2 cents at $1.26 on 18.3m shares traded, despite reporting earnings that were largely in line. Traders said the spectre of further order cancellations appeared to weigh on the stock.
On the balance, Semb Marine rose 26 cents at $3.67 with its results beating street consensus. One analyst believes the company is on the verge of announcing several sizeable orders in the future. Others like WBL Corp, Cerebos, Jardine C&C, AP Oil and ARA rose between 2 and 54 cents.
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Pray again :)
============
Pre-Market Open Commentary for 23 February 2010
DJIA: 10383.38 -18.97
Nasdaq Composite: 2242.03 -1.84
Following four-straight consecutive trading sessions of gains, US stocks ended a choppy Monday marginally lower as investors await the highly anticipated congressional testimony by the US Fed Chairman on Wednesday. Meanwhile, investors weighed corporate results, President Obama’s healthcare proposal and a corporate acquisition deal. Lowe’s reported higher-than-expected quarterly earnings and revenue and was upbeat that sales will continue to rise in the current financial year. Investors also took comfort from signs that regulatory changes proposed in Washington will be milder than feared, including provisions in President Obama’s health care reform plan. The 10-year plan of close to US$1 trillion plan that would cover more than 31 mil Americans currently not insured without adding to the budget deficit. On the corporate scene, Schlumberger is buying oil driller Smith International in an all-stock deal worth US$11 bil, which has already been approved by the board of directors of both companies.
All the major indices ended lower with the Dow Jones Industrial Average losing 0.18% while S&P 500 fell 0.10% to 1,108.01. Nasdaq composite dipped 0.08%.
Market sentiment will also take leads from a bevy of economic readings due this week. On Tuesday, reports are due on the housing market and Consumer Confidence Index. The corporate results of several retailers including Barnes and Noble, Home Depot, Macy’s and Target are also scheduled on the same day.
US light crude oil for March delivery rose US$0.35 to settle at US$80.16 a barrel.
In Singapore today:
It was a slow trading Monday on the local bourse as the market awaits the Budget announcement. The exuberance in the other regional markets did not catch on in the local market. The STI added 18 points but slid back to end a mere 0.32 points higher at 2757.46. In contrasts, Hang Seng gained 2.4%, Nikkei was up 2.7% and Kospi Index rose 2.0%, after the market’s knee-jerk reaction last week to the hike in discount rate gave way to a more measured take since the Fed’s move will not impact borrowing costs for consumers and businesses. Traders now saw the rate hike as confidence in the economic recovery. Fears about a meltdown in the Chinese stock markets abated when the Shanghai Composite re-opened yesterday after its week long close for the Chinese New Year holidays. The Shanghai market ended 0.5% lower in reaction to the latest PRC measures to cool the credit market. For every stock that fell, 1.6 rose. Turnover was light with 1.12bil shares with a value of $1.21bil traded.
The Singapore Government announced last Friday after the market closed further measures to cool the property sector. A seller's stamp duty and a lower loan-to-value limit of 80 per cent for all housing loans was largely seen as symbolic and targeted at speculators. Nonetheless, property counters fell as sentiments weighed on the sector. Shares of City Dev, CapitaLand, Wing Tai, Ho Bee and Keppel Land fell between 7 and 52 cents.
Expect market sentiment to be subdued and the local bourse to consolidate taking cues from the weaker overnight close on Wall Street and as investors await the highly anticipated congressional testimony by the US Fed Chairman on Wednesday and Thursday.
======
Mid Day February 23. Stocks recovered after spike in the Hang Seng Index.
Asian markets wobbled and tracked a lower close on Wall Street as traders mused on the next FED move. While general consensus point to a rate hike(FED fund rate) at the end of the year(at the earliest), some traders now think they may soon end its program to buy mortgage back securities at the end of the quarter. Stocks worked lower when the Shanghai Composite index shed over 1.4 per cent in early trading but managed to claw back from their nadirs. The STI index rose 3.73 points at 2761.19 points after a spike in the Hang Seng index prompted a short cover bounce here. Market breadth improved over the session to end almost flat. Turnover was 677mil shares with a value of 637mil traded.
Traders again moved to limit their exposure to the market as the rebound reached some resistance levels. A weak open in the Chinese indices had traders playing from the short side. The Hang Seng index reversed from a 250 points decline and about turned to a 250 points gain, prompted by talks of goodies to be announced in tomorrow's budget speech. This in turned lifted most stocks here from their nadir lows. Shares of Genting fell 1 cent at 96 cents after failing to breach the 98 cents resistance point. It earlier touched a low at 93.5 cents prompted by talks of short selling. Recent listing Sin Heng fell 2 cents at 25.5 cents but recovered to end 1 cent down at 26.5 cents. Traders wondered if the ipo issue manager had started to buy back shares as part of the stabilisation program.
Resource stocks were off the lows of the session with shares of Wilmar, Noble Group and Olam rising between 1 and 8 cents. Cosco Corp fell 4 cents at $1.24 despite reporting earnings to were largely in line. Traders said the spectre of further order cancellations appeared to weigh on the stock.
On the balance, Semb Marine rose 21 cents at $3.62 with its results beating street consensus. One analyst believes the company is on the verge of announcing several sizeable orders in the future. Others like WBL Corp, Cerebos, Jardine C&C, AP Oil and ARA rose between 2 and 54 cents
========
Market close Feb 23. STI rises towards the close
The local bourse got a boost from the pos itive US futures and also Hang Seng‚s higher close to overcome earlier lethargy. Stocks had inched lower when the Shanghai Composite index shed over 1.4 per cent in early trading but managed to claw back from their nadirs. The STI index closed 25.09 points higher at 2782.55 points after a spike in the Hang Seng index prompted a short cover bounce here. Market breadth improved over the session to close with 268 gainers against 154 losers. Turnover was 1.19bil shares with a value of 1.26bil traded.
Traders again moved to limit their exposure to the market as the rebound reached some resistance levels. The Hang Seng index reversed from a 250 points decline and about turned, prompted by talks of goodies to be announced in tomorrow's budget speech. This is turned led most stocks here from their nadir lows. Shares of Genting fell 1.5 cent at 95.5 cents after failing to breach the 98 cents resistance point. It earlier touched a low at 93.5 cents prompted by talks of short s e lling.
Recent listing Sin Heng fell 2 cents at 25.5 cents but recovered to end 1 cent down at 26.5 cents. Traders wondered if the ipo issue manager had started to buy back shares as part of the stabilisation program.
Resource stocks were off the lows of the session with shares of Wilmar, Noble Group and Olam rising between 1 and 8 cents. Cosco Corp fell 2 cents at $1.26 on 18.3m shares traded, despite reporting earnings that were largely in line. Traders said the spectre of further order cancellations appeared to weigh on the stock.
On the balance, Semb Marine rose 26 cents at $3.67 with its results beating street consensus. One analyst believes the company is on the verge of announcing several sizeable orders in the future. Others like WBL Corp, Cerebos, Jardine C&C, AP Oil and ARA rose between 2 and 54 cents.
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Labels:
Yanlord
Fed Hike : What does it mean
Discount Blues
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
The Federal Reserve 25 basis point discount rate increase on Thursday to 0.75% was not a market moving event. The first Fed hike in either the discount rate or the more important fed funds rate in almost two and a half years will have little direct economic impact. It had no effect on the bond or mortgage market and little on banks whose Fed borrowing is directly subject to it. The 10 year Treasury closed higher on Friday.
The discount rate is not unimportant but its meaning is largely symbolic. It is the rate at which banks borrow overnight funds from the Fed at the discount window rather than in the private sector money markets. But since almost no bank has been using the window the hike will have no material effect on banks' cost of funds.
Historically the discount rate has been about 1% over the federal funds rate; essentially it is a penalty charge. With fed funds at 00%-0.25% the discount rate has probably two more 25 basis point hikes in the immediate future. The Fed itself said the increase represented a 'normalization' of lending rather than a change in policy. The FOMC statement for more than a year has included its assessment of the US economy as needing low rates "for an extended period" and Fed officials repeated this on Thursday when they announced the discount hike.
The fed funds rate is properly the Federal Funds Target Rate. It is where the Federal Reserve aims to keep rates in the private money markets by example and by intervention through the trading desk of the Federal Open Market Committee (FOMC). If banks cannot access the private markets because of credit or liquidity constraints then they can borrow from the Fed directly at the discount window. Because of the implied impairment witnessed by use of the discount window banks have always been extremely reluctant to take this route. The window lets the private credit and equities markets know that an institution is in trouble, hence the term 'discount window stigma'.
The increase in the discount rate is a measure of the Fed and Ben Bernanke's willingness to return to normal interest rates and an estimate of the evolution of their economic and financial concerns.
Banks and the banking system are no longer on the front lines of distress. If they were or if the government still had serious concerns about their capital or asset structure the Fed would not have risked even this symbolic step. If the reported profits and bonuses of some of the banks that took government TARP money are one sign of returned corporate health, this rate increase is a second.
Consumer inflation, headline and core, are benign. In January CPI gained 0.2% and the core measure was negative at -0.1%. The year over year readings were 2.6% and 1.6% respectively. This was the first monthly fall in core inflation since December 1982. It has long been the Fed contention that inflation would be restrained by the recessionary inability of firms to raise prices and the deflationary effect of unemployment on wages.
But inflationary indicators are stirring. In January the Producer Price Index (PPI) gained 1.4%, almost double the expectation and more than three times the December reading of 0.4%. The yearly result was 4.6%; in December it was 4.4%. Over the past six months the rate of wholesale inflation has been 9.8%. The Fed may be correct that firms are currently unable to pass along price increases. But PPI seems to indicate building inflationary pressures that even a modest decrease in the unemployment rate may remit into consumer and wage inflation.
The Fed's estimated range for GDP growth this year of 2.8% to 3.5% will not appreciably reduce unemployment. The recent up tick in weekly jobless claims, the four week moving average has gained almost 27,000 in the New Year, a warning on the complete lack of job creation.
The discount rate hike is symbolic anti-inflation rhetoric. The Fed is unable to make a substantive rate move, even if it wanted to, in the face of a very weak job economy and uncertain prospects for long term employment growth.
More important for the real interest rate market is the ending of the Fed's MBS purchase program and its impact on residential and commercial mortgage rates and the housing market.
Housing is directly tied to the health of the banks and the stability of the financial system. Many institutions still hold large amounts of asset-backed paper with questionable mortgage portions. The housing market remains very weak and in most measures is close to historic lows. If the withdrawal of Federal support for the housing securitization market causes a spike in mortgage rates, and the Fed cannot be certain that will not happen, then the entire cycle of falling housing prices devaluing the existing mortgage assets on bank books, requiring more support capital, the cycle that almost brought down the system last fall, could reignite.
The possibility of the asset write-downs triggering capital requirements in the financial sector is considerably less than it was in the fall of 2008 because some of the mark-to-market rules have been relaxed. Banks no longer have to price assets for which there is no market reference well below residual value. Still, after the 2008 near death experience, Ben Bernanke and the Fed Governors will take no chances.
In the current American economic environment of low actual inflation, weak GDP growth, nonexistent job creation, a moribund and still dangerous housing market and a financial sector only in remission, the symbolic placebo of the discount rate is all the anti-inflation medicine the Fed can afford to prescribe.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
The Federal Reserve 25 basis point discount rate increase on Thursday to 0.75% was not a market moving event. The first Fed hike in either the discount rate or the more important fed funds rate in almost two and a half years will have little direct economic impact. It had no effect on the bond or mortgage market and little on banks whose Fed borrowing is directly subject to it. The 10 year Treasury closed higher on Friday.
The discount rate is not unimportant but its meaning is largely symbolic. It is the rate at which banks borrow overnight funds from the Fed at the discount window rather than in the private sector money markets. But since almost no bank has been using the window the hike will have no material effect on banks' cost of funds.
Historically the discount rate has been about 1% over the federal funds rate; essentially it is a penalty charge. With fed funds at 00%-0.25% the discount rate has probably two more 25 basis point hikes in the immediate future. The Fed itself said the increase represented a 'normalization' of lending rather than a change in policy. The FOMC statement for more than a year has included its assessment of the US economy as needing low rates "for an extended period" and Fed officials repeated this on Thursday when they announced the discount hike.
The fed funds rate is properly the Federal Funds Target Rate. It is where the Federal Reserve aims to keep rates in the private money markets by example and by intervention through the trading desk of the Federal Open Market Committee (FOMC). If banks cannot access the private markets because of credit or liquidity constraints then they can borrow from the Fed directly at the discount window. Because of the implied impairment witnessed by use of the discount window banks have always been extremely reluctant to take this route. The window lets the private credit and equities markets know that an institution is in trouble, hence the term 'discount window stigma'.
The increase in the discount rate is a measure of the Fed and Ben Bernanke's willingness to return to normal interest rates and an estimate of the evolution of their economic and financial concerns.
Banks and the banking system are no longer on the front lines of distress. If they were or if the government still had serious concerns about their capital or asset structure the Fed would not have risked even this symbolic step. If the reported profits and bonuses of some of the banks that took government TARP money are one sign of returned corporate health, this rate increase is a second.
Consumer inflation, headline and core, are benign. In January CPI gained 0.2% and the core measure was negative at -0.1%. The year over year readings were 2.6% and 1.6% respectively. This was the first monthly fall in core inflation since December 1982. It has long been the Fed contention that inflation would be restrained by the recessionary inability of firms to raise prices and the deflationary effect of unemployment on wages.
But inflationary indicators are stirring. In January the Producer Price Index (PPI) gained 1.4%, almost double the expectation and more than three times the December reading of 0.4%. The yearly result was 4.6%; in December it was 4.4%. Over the past six months the rate of wholesale inflation has been 9.8%. The Fed may be correct that firms are currently unable to pass along price increases. But PPI seems to indicate building inflationary pressures that even a modest decrease in the unemployment rate may remit into consumer and wage inflation.
The Fed's estimated range for GDP growth this year of 2.8% to 3.5% will not appreciably reduce unemployment. The recent up tick in weekly jobless claims, the four week moving average has gained almost 27,000 in the New Year, a warning on the complete lack of job creation.
The discount rate hike is symbolic anti-inflation rhetoric. The Fed is unable to make a substantive rate move, even if it wanted to, in the face of a very weak job economy and uncertain prospects for long term employment growth.
More important for the real interest rate market is the ending of the Fed's MBS purchase program and its impact on residential and commercial mortgage rates and the housing market.
Housing is directly tied to the health of the banks and the stability of the financial system. Many institutions still hold large amounts of asset-backed paper with questionable mortgage portions. The housing market remains very weak and in most measures is close to historic lows. If the withdrawal of Federal support for the housing securitization market causes a spike in mortgage rates, and the Fed cannot be certain that will not happen, then the entire cycle of falling housing prices devaluing the existing mortgage assets on bank books, requiring more support capital, the cycle that almost brought down the system last fall, could reignite.
The possibility of the asset write-downs triggering capital requirements in the financial sector is considerably less than it was in the fall of 2008 because some of the mark-to-market rules have been relaxed. Banks no longer have to price assets for which there is no market reference well below residual value. Still, after the 2008 near death experience, Ben Bernanke and the Fed Governors will take no chances.
In the current American economic environment of low actual inflation, weak GDP growth, nonexistent job creation, a moribund and still dangerous housing market and a financial sector only in remission, the symbolic placebo of the discount rate is all the anti-inflation medicine the Fed can afford to prescribe.
Labels:
FX Trading
Monday, February 22, 2010
22 Feb 10 : So China Market Did Not Crash...
Pre-Market Open Commentary for 22 February 2010
DJIA: 10402.35 +9.45
Nasdaq Composite: 2243.87 +2.16
Following a weak open last Friday in reaction to the Fed’s decision to boost the emergency bank lending rate, the US market managed to claw out gains as the knee-jerk reaction gave way to a more measured take since the Fed’s move will not impact borrowing costs for consumers and businesses. The government’s reading on consumer inflation, which came in better-than-expectations, indicating that pricing pressure remains minimal, also helped lift market sentiment. Consumer price index (CPI) rose 0.2% in January, against expectations of a rise of 0.3%, after rising 0.2% in December while core-CPI declined 0.1% in January, against expectations of a rise of 0.1%, after rising 0.1% in December.
For the week, all the major indices ended higher. The Dow Jones Industrial Average rose 3.00% and S&P 500 climbed 3.13% to end at 1109.17. Nasdaq composite gained 2.76%.
A bevy of reports on the housing market, employment and GDP growth are due this week. The Fed Chairman will also be testifying on the state of the economy and monetary policy before the House Financial Services Committee on Wednesday and the Senate Banking Committee on Friday. On the corporate front, the quarterly results of Home Depot and Target will be due this Tuesday. However, on Monday, there is no market-moving company or economic news scheduled.
In Singapore today:
Most of the regional markets took a tumbled last Friday on concerns about the US Federal Reserves’ decision to raise the emergency bank lending rate. The STI did not escape the meltdown but managed to claw back losses towards market close, to end 12.05 points, or 0.44%, lower at 2757.14. For the week, the STI closed virtually unchanged, easing 1.76 points or 0.06%.
Expect the broader market to take leads from the positive overnight close on Wall Street last Friday as initial concerns over the Fed’s decision to raise discount rates eased given that the higher rates will not hike consumer or corporate borrowing costs. The property sector, however, is expected to react negatively to last Friday’s announcement by the government to impose a seller’s stamp duty and tougher rules on bank lending to curb property speculation. The new measures are expected to dampen sentiment on the property sector in the short-term.
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Mid Day February 22. STI rose at mid-day.
Wall Street improved through the session Friday to close in positive territory as traders worked off the initial FED shock. For now, traders saw the hike in the discount rate as confidence in the economic recovery. Fears about a meltdown in the Chinese stock markets abated when the Shanghai Composite (SSEC) re-opened today after its week long close for the Chinese New Year holidays. At the time of this writing, the SSEC closed 0.2 per cent down and traded in a narrow range. The STI index rose 11.67 points at 2768.79 points. For every stock that fell, 2 rose. Turnover was light on 642mil shares with a value of $672mil shares.
The Singapore Government announced Friday after the market closed further measures to cool the property sector. A seller's stamp duty and a lower loan-to-value limit of 80 per cent for all housing loans was largely seen as symbolic and targeted at speculators. Nonetheless, property counters fell as sentiments weighed on the sector. Shares of CapitaLand, City Developments, Ho Bee, Allgreen Properties, Wing Tai and Keppel Land fell between 4 and 60 cents.
On the balance, shares of Genting Singapore, Noble Group, Indo Agric, Straits Asia, Ezra, Ezion, SIA, UOB, Jardine C&C, DBS and OCBC bank rose between 2 and 40 cents.
========
Market close Feb 22. STI closes flat despite positive start
Fears about a meltdown in the C hinese stock markets abated when the Shanghai Composite (SSEC) re-opened today after its week long close for the Chinese New Year holidays. While China indices eventually closed down, the volatile Hang Seng Index closed up 488 points up, and in the process, aided sentiments across the region.
But profit taking again whittled the gains in Singapore and at closing bell, the benchmark STI closed up a mere 0.32 points to 2757.46. For every stock that fell, 2 rose. Turnover was light on 1.1bil shares with a value of $1.2mil done.
There was profit taking in the property counters after the Singapore Government announced last Friday further measures to cool the property sector, and prevent a bubble. An additional seller's stamp duty on units sold within a year of purchase, and a lower loan-to-value limit of 80 per cent for all housing loans was largely seen as symbolic and targetted at speculators. Nonetheless, property counters fell as sentiments weighed on the se c tor. Shares of City Dev, CapitaLand, Wing Tai, Ho Bee and Keppel Land fell between 7 and 52 cents.
On the balance, shares of Jardine C&C, STA Panocean, SIA, and F&N, rose between 10 and 38 cents.
=======
DJIA: 10402.35 +9.45
Nasdaq Composite: 2243.87 +2.16
Following a weak open last Friday in reaction to the Fed’s decision to boost the emergency bank lending rate, the US market managed to claw out gains as the knee-jerk reaction gave way to a more measured take since the Fed’s move will not impact borrowing costs for consumers and businesses. The government’s reading on consumer inflation, which came in better-than-expectations, indicating that pricing pressure remains minimal, also helped lift market sentiment. Consumer price index (CPI) rose 0.2% in January, against expectations of a rise of 0.3%, after rising 0.2% in December while core-CPI declined 0.1% in January, against expectations of a rise of 0.1%, after rising 0.1% in December.
For the week, all the major indices ended higher. The Dow Jones Industrial Average rose 3.00% and S&P 500 climbed 3.13% to end at 1109.17. Nasdaq composite gained 2.76%.
A bevy of reports on the housing market, employment and GDP growth are due this week. The Fed Chairman will also be testifying on the state of the economy and monetary policy before the House Financial Services Committee on Wednesday and the Senate Banking Committee on Friday. On the corporate front, the quarterly results of Home Depot and Target will be due this Tuesday. However, on Monday, there is no market-moving company or economic news scheduled.
In Singapore today:
Most of the regional markets took a tumbled last Friday on concerns about the US Federal Reserves’ decision to raise the emergency bank lending rate. The STI did not escape the meltdown but managed to claw back losses towards market close, to end 12.05 points, or 0.44%, lower at 2757.14. For the week, the STI closed virtually unchanged, easing 1.76 points or 0.06%.
Expect the broader market to take leads from the positive overnight close on Wall Street last Friday as initial concerns over the Fed’s decision to raise discount rates eased given that the higher rates will not hike consumer or corporate borrowing costs. The property sector, however, is expected to react negatively to last Friday’s announcement by the government to impose a seller’s stamp duty and tougher rules on bank lending to curb property speculation. The new measures are expected to dampen sentiment on the property sector in the short-term.
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Mid Day February 22. STI rose at mid-day.
Wall Street improved through the session Friday to close in positive territory as traders worked off the initial FED shock. For now, traders saw the hike in the discount rate as confidence in the economic recovery. Fears about a meltdown in the Chinese stock markets abated when the Shanghai Composite (SSEC) re-opened today after its week long close for the Chinese New Year holidays. At the time of this writing, the SSEC closed 0.2 per cent down and traded in a narrow range. The STI index rose 11.67 points at 2768.79 points. For every stock that fell, 2 rose. Turnover was light on 642mil shares with a value of $672mil shares.
The Singapore Government announced Friday after the market closed further measures to cool the property sector. A seller's stamp duty and a lower loan-to-value limit of 80 per cent for all housing loans was largely seen as symbolic and targeted at speculators. Nonetheless, property counters fell as sentiments weighed on the sector. Shares of CapitaLand, City Developments, Ho Bee, Allgreen Properties, Wing Tai and Keppel Land fell between 4 and 60 cents.
On the balance, shares of Genting Singapore, Noble Group, Indo Agric, Straits Asia, Ezra, Ezion, SIA, UOB, Jardine C&C, DBS and OCBC bank rose between 2 and 40 cents.
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Market close Feb 22. STI closes flat despite positive start
Fears about a meltdown in the C hinese stock markets abated when the Shanghai Composite (SSEC) re-opened today after its week long close for the Chinese New Year holidays. While China indices eventually closed down, the volatile Hang Seng Index closed up 488 points up, and in the process, aided sentiments across the region.
But profit taking again whittled the gains in Singapore and at closing bell, the benchmark STI closed up a mere 0.32 points to 2757.46. For every stock that fell, 2 rose. Turnover was light on 1.1bil shares with a value of $1.2mil done.
There was profit taking in the property counters after the Singapore Government announced last Friday further measures to cool the property sector, and prevent a bubble. An additional seller's stamp duty on units sold within a year of purchase, and a lower loan-to-value limit of 80 per cent for all housing loans was largely seen as symbolic and targetted at speculators. Nonetheless, property counters fell as sentiments weighed on the se c tor. Shares of City Dev, CapitaLand, Wing Tai, Ho Bee and Keppel Land fell between 7 and 52 cents.
On the balance, shares of Jardine C&C, STA Panocean, SIA, and F&N, rose between 10 and 38 cents.
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Market Update
Saturday, February 20, 2010
Friday, February 19, 2010
19 Feb 10 : All Eyes on Next Week
Pre-Market Open Commentary for 19 February 2010
DJIA: 10392.90 +83.66
Nasdaq Composite: 2241.71
Following a volatile session, US stocks ended higher for the third-straight trading session notwithstanding the mixed economic readings, Wal-Mart’s cautious outlook and a stronger greenback. Weekly jobless claims jumped with the number of new claims for unemployment rising to 473,000 last week, worse-than-expectations of 438,000 claims, from a revised 442,000 claims in the previous week while continuing claims held steady at 4.563mil, instead of expectations of a decline to 4.5mil. The key inflation indicator, Producer Price Index (PPI) rose a seasonally adjusted 1.4% in January, higher-than-expectations of a rise of 0.8%, from a rise of 0.4% in December. Core-PPI also rose higher-than-expected with an increase of 0.3%, against the forecast of a rise of 0.1%, after registering no change in December, signaling inflationary pressure is starting to build after a period of little pricing pressure. The leading economic indicators also came in worse-than-expected with a rise to 0.3% in January, against expectations of a rise of 0.5%, from a rise of 1.2% in December. On a more positive note, the regional read on manufacturing rose to 17.6 in February, better-than-expectations of a rise to 17, from 15.2 in January.
The corporate results were also mixed with Dell reporting a weaker quarterly earnings and higher revenue that both beat expectations while Wal-Mart reported higher quarterly earnings that topped expectations but higher quarterly revenue that missed forecast. In addition, Wal-Mart’s sales of same-store fell 1.6% QoQ and the forward outlook was cautious with the company indicating that its US business is likely to continue to struggle in the tough economy.
Following the market close, the Federal Reserve also raised the discount rate by a quarter-percentage point to 0.75% although the Fed Fund rate is expected to remain unchanged at historical lows near zero for the foreseeable future.
All the major indices rose with the Dow Jones Industrial Average gaining 0.81% while S&P 500 rose 0.66% to 1,106.75. Nasdaq composite climbed 0.69% higher.
On Friday, reading on the January core price index will be released.
US light crude oil for March delivery rose US$1.73 to settle at US$79.06 a barrel.
In Singapore today:
Positive leads from US were largely ignored by most of the Asian markets yesterday amid lingering concerns over Greece’s debt woes. There were also jitters over the possibility of selling pressure when the Chinese market open next Monday as the PRC bourse has yet to react to last Friday’s news about increasing bank reserve requirements for the second time this year. The Hang Seng was down 0.54% while the STI fell 24.87 points, or 0.89%, to 2769.19. For every stock that rose, 2.5 fell. Turnover was thin with 1.37bil shares with a value of $1.23bil traded.
Talks of funds selling took shares of Genting below the psychological $1.00 level to end 7 cents down at 95 cents on 368mil shares. Other decliners include Jardine C&C, STX Panocean, JMH, SIA, DBS, UOB and IndoAgri which fell between 9 and 40 cents.
Notwithstanding the positive overnight close in Wall Street, expect market sentiment to be cautious and some profit-taking today ahead of the possibility of selling pressure in the Chinese bourse next Monday as the PRC market has yet to react to news about raising bank reserve requirements.
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Mid Day February 19. Asian markets were little inspired.
The US Federal Reserve surprised the market with a 25 basis points hike to the discount rate after the market closed. The discount rate hike(now at 0.75 per cent) is the first in three years and widely seen as a symbolic move. The FED also emphasized that the move doesn't mean it was tightening monetary policy and the current move was `intended as a further nomalization of the Federal Reserve's lending facilities'.
With the US index futures shedding close to 1 per cent (erasing much of yesterday's gains), Asian markets were little inspired. The US dollar's firming did not not go down well with risk takers as well. The STI index fell 29.55 points at 2739.64 points. For every stock that rose, 3 fell. Turnover was 861mil shares with a value of $774mil traded.
`The technical rebound appear to be over and we could now be resuming the downtrend' a trader said. `The US discount rate hike would be bad for sentiments now and traders are already musing over how the Chinese bourse would play out when they open next week - China announced a hike in the banks' reserve requirement last week' he added. Genting shares resumed its slide, shedding 2 cents at 93 cents on a staggering 255mil shares turnover.
Resource stocks fell with shares of Indoagric, Straits Asia, Olam, Golden Agric and First Resources easing between 1 and 7 cents. Other losers included Jardine Matheson, Jardine Strategic, Keppel Corp, Ho Bee, Yanlord, City Developments, SGX and China Fishery Group that fell between 4 and 50 cents.
On the balance, shares of SIA, GuocoLand, Tiger Air, Osim, Wilmar and Seroja rose between 1 and 14 cents.
DJIA: 10392.90 +83.66
Nasdaq Composite: 2241.71
Following a volatile session, US stocks ended higher for the third-straight trading session notwithstanding the mixed economic readings, Wal-Mart’s cautious outlook and a stronger greenback. Weekly jobless claims jumped with the number of new claims for unemployment rising to 473,000 last week, worse-than-expectations of 438,000 claims, from a revised 442,000 claims in the previous week while continuing claims held steady at 4.563mil, instead of expectations of a decline to 4.5mil. The key inflation indicator, Producer Price Index (PPI) rose a seasonally adjusted 1.4% in January, higher-than-expectations of a rise of 0.8%, from a rise of 0.4% in December. Core-PPI also rose higher-than-expected with an increase of 0.3%, against the forecast of a rise of 0.1%, after registering no change in December, signaling inflationary pressure is starting to build after a period of little pricing pressure. The leading economic indicators also came in worse-than-expected with a rise to 0.3% in January, against expectations of a rise of 0.5%, from a rise of 1.2% in December. On a more positive note, the regional read on manufacturing rose to 17.6 in February, better-than-expectations of a rise to 17, from 15.2 in January.
The corporate results were also mixed with Dell reporting a weaker quarterly earnings and higher revenue that both beat expectations while Wal-Mart reported higher quarterly earnings that topped expectations but higher quarterly revenue that missed forecast. In addition, Wal-Mart’s sales of same-store fell 1.6% QoQ and the forward outlook was cautious with the company indicating that its US business is likely to continue to struggle in the tough economy.
Following the market close, the Federal Reserve also raised the discount rate by a quarter-percentage point to 0.75% although the Fed Fund rate is expected to remain unchanged at historical lows near zero for the foreseeable future.
All the major indices rose with the Dow Jones Industrial Average gaining 0.81% while S&P 500 rose 0.66% to 1,106.75. Nasdaq composite climbed 0.69% higher.
On Friday, reading on the January core price index will be released.
US light crude oil for March delivery rose US$1.73 to settle at US$79.06 a barrel.
In Singapore today:
Positive leads from US were largely ignored by most of the Asian markets yesterday amid lingering concerns over Greece’s debt woes. There were also jitters over the possibility of selling pressure when the Chinese market open next Monday as the PRC bourse has yet to react to last Friday’s news about increasing bank reserve requirements for the second time this year. The Hang Seng was down 0.54% while the STI fell 24.87 points, or 0.89%, to 2769.19. For every stock that rose, 2.5 fell. Turnover was thin with 1.37bil shares with a value of $1.23bil traded.
Talks of funds selling took shares of Genting below the psychological $1.00 level to end 7 cents down at 95 cents on 368mil shares. Other decliners include Jardine C&C, STX Panocean, JMH, SIA, DBS, UOB and IndoAgri which fell between 9 and 40 cents.
Notwithstanding the positive overnight close in Wall Street, expect market sentiment to be cautious and some profit-taking today ahead of the possibility of selling pressure in the Chinese bourse next Monday as the PRC market has yet to react to news about raising bank reserve requirements.
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Mid Day February 19. Asian markets were little inspired.
The US Federal Reserve surprised the market with a 25 basis points hike to the discount rate after the market closed. The discount rate hike(now at 0.75 per cent) is the first in three years and widely seen as a symbolic move. The FED also emphasized that the move doesn't mean it was tightening monetary policy and the current move was `intended as a further nomalization of the Federal Reserve's lending facilities'.
With the US index futures shedding close to 1 per cent (erasing much of yesterday's gains), Asian markets were little inspired. The US dollar's firming did not not go down well with risk takers as well. The STI index fell 29.55 points at 2739.64 points. For every stock that rose, 3 fell. Turnover was 861mil shares with a value of $774mil traded.
`The technical rebound appear to be over and we could now be resuming the downtrend' a trader said. `The US discount rate hike would be bad for sentiments now and traders are already musing over how the Chinese bourse would play out when they open next week - China announced a hike in the banks' reserve requirement last week' he added. Genting shares resumed its slide, shedding 2 cents at 93 cents on a staggering 255mil shares turnover.
Resource stocks fell with shares of Indoagric, Straits Asia, Olam, Golden Agric and First Resources easing between 1 and 7 cents. Other losers included Jardine Matheson, Jardine Strategic, Keppel Corp, Ho Bee, Yanlord, City Developments, SGX and China Fishery Group that fell between 4 and 50 cents.
On the balance, shares of SIA, GuocoLand, Tiger Air, Osim, Wilmar and Seroja rose between 1 and 14 cents.
Labels:
Market Update
Thursday, February 18, 2010
18 Feb 10 : Genting Goes Down the Drain
Pre-Market Open Commentary for 18 February 2010
DJIA: 10309.24 +40.43
Nasdaq Composite: 2226.29 +12.10
US stocks gained moderately on Wednesday as investors weighed the better-than-expected economic reports and upbeat company news with mixed forecast from the Federal Reserve. Housing starts rose 2.8% in January to 591,000 unit annual rate, better-than-expectations of a rise to 580,000 unit annual rate, from 575,000 unit annual rate in December while building permits also topped forecast, falling 4.9% to an annual unit rate of 621,000 in January, against expectations of a fall to 620,000 unit, from 653,000 in December. The manufacturing reading was also upbeat with industrial production rising 0.9% in January, ahead of expectations of a rise of 0.7%, from a rise of 0.7% in the previous month while capacity utilisation rose to 72.6%, in line with expectations, from 71.9% in December.
Upbeat corporate news also lifted market sentiment. Walgreen will be buying rival drugstore Duane Reade for US$1.08bil including debt and the quarterly results of Hewlett-Packard, Merck and Barclays topped expectations.
However, the Federal Reserve released mixed forecasts with the central bankers saying that unemployment should decline only modestly over the next few years but gave a modest boost to the economic growth forecast to a targeted growth of between 2.8% and 3.5% in 2010 from an earlier forecast in November of between 2.5% and 3.5%.
All the major indices rose with the Dow Jones Industrial Average gaining 0.39% while S&P 500 rose 0.42% to 1,099.51. Nasdaq composite climbed 0.55% higher.
Thursday brings numerous economic readings including the weekly jobless claims, index of leading economic indicators and the January Producer Price Index. The corporate results of Wal-Mart Stores will also be released on the same day.
US light crude oil for March delivery rose US$0.32 to settle at US$77.33 a barrel.
In Singapore today:
Overnight gains on Wall Street, following upbeat US data showing rapidly improving manufacturing outlook in New York, lifted Asian markets. The China and Taiwan markets remained close for Chinese New Year but the Hang Seng rose 1.3% and Nikkei gained 2.7%. The STI added 35.16 points, or 1.3%, to close at 2794.06 but traders pointed to 2800 as the key psychological resistance level. For every stock that fell, 2.1 rose. Turnover was 1.41bil shares with a value of $1.43bil traded.
Encouraging URA data showing private home sales in Singapore of 1,473 units in January, rising for the first time since July 2009, further boosted market sentiment and lifted property shares. But resource stocks were clear standouts, aided by the US dollar's weakness. Straits Asia jumped 12 cents at $2.21 and was tracked by Golden Agric, IndoAgri, Wilmar, Olam, Noble Group and First Resources that rose between 2 and 12 cents.
Expect market sentiment to be dampened by a surprise QoQ 8.9% dip in Singapore’s non-oil exports in January, due to weakness in the volatile pharmaceutical sector. Although exports soared 20.8% YoY in January, the numbers were pale in comparison to those of South Korea and Taiwan which soared 47.1% YoY and 75.8% YoY respectively, signaling that the export recovery in Singapore is still vulnerable. Expect some profit-taking in the local bourse today in the absence of fresh directions.
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Mid Day February 18. STI eased on profit taking.
A jump in the US dollars and the revisit of the Euro dollars to its crisis levels of 1.355 (EUR/USD) caused some panic and had some traders jettison their positions. `Certainly feels dicey and I wonder if Wall Street's lead can be maintained. China could start lower when they open next week' a dealer cautioned. The STI index eased 10.96 points at 2783.10 points on profit taking. For every stock that rose, 2 fell. Turnover was 742mil shares with a value of $612mil traded.
Talks of a contract win boosted the shares of Ezion that rose 3.5 cents at 72 cents. Peer Ausgroup rose 1.5 cents at 58.5 cents on similar speculations. China Fishery Group rose 3 cents at $1.83 after it said its application for a secondary listing in Oslo has been approved. Financial One Corp which is seeking to list a subsidiary in Taiwan rose 4 cents at 50 cents on rumours that it may soon announce further details on the proposed listing. Other advancing issues included Singapore Land, Dairy Farm, Bukit Sembawang, Venture Corp, Falcon Energy, ARA and Sunpower that rose between 1 and 10 cents.
Talks of funds selling took shares of Genting below the psychological $1.00 level to end 3.5 cents down at 98.5 cents on 171mil shares. Other like Jardine Matheson, SIA, DBS, CapitaLand, UOB, ST Engineering, HPL, SATS Services, Olam, Semb Corp and F&N fell between 2 and 80 cents.
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Market close Feb 18. Profit taking wipes out most of yesterday's gains
Some weakness in t he US index futures market, a slight appreciation of the greenback and the revisit of the Euro to its crisis levels of 1.355 ( EUR/USD) caused some panic in the markets today and had some traders jettison their positions. The STI index was in negative territory for most of the day and closed 24.87 points down at 2769.19 points on profit taking. For every stock that rose, 2 fell. Turnover was 1.37bil shares with a value of $1.23bil traded.
Talks of a contract win boosted the shares of Ezion that rose 2.5 cents at 71 cents. Peer Ausgroup rose 1.5 cents at 58.5 cents on similar speeculations. China Fishery Group rose 1 cents at $1.81 after it said its application for a secondary listing in Oslo has been approved.
Financial One Corp which is seeking to list a subsidiary in Taiwan rose 2.5 cents at 48.5 cents on rumours that it may soon announce further details on the proposed listing. Other advancing issues included Singapore Land, Great Eastern, HL Asia, SingTe l and ARA, that rose between 3 and 10 cents.
Talks of funds selling took shares of Genting below the psychological $1.00 level to end 7 cents down at 95 cents on 368mil shares. Other like Jardine C&C, STX Panocean, JMH, SIA, DBS, UOB and IndoAgri fell between 9 and 40 cents.
DJIA: 10309.24 +40.43
Nasdaq Composite: 2226.29 +12.10
US stocks gained moderately on Wednesday as investors weighed the better-than-expected economic reports and upbeat company news with mixed forecast from the Federal Reserve. Housing starts rose 2.8% in January to 591,000 unit annual rate, better-than-expectations of a rise to 580,000 unit annual rate, from 575,000 unit annual rate in December while building permits also topped forecast, falling 4.9% to an annual unit rate of 621,000 in January, against expectations of a fall to 620,000 unit, from 653,000 in December. The manufacturing reading was also upbeat with industrial production rising 0.9% in January, ahead of expectations of a rise of 0.7%, from a rise of 0.7% in the previous month while capacity utilisation rose to 72.6%, in line with expectations, from 71.9% in December.
Upbeat corporate news also lifted market sentiment. Walgreen will be buying rival drugstore Duane Reade for US$1.08bil including debt and the quarterly results of Hewlett-Packard, Merck and Barclays topped expectations.
However, the Federal Reserve released mixed forecasts with the central bankers saying that unemployment should decline only modestly over the next few years but gave a modest boost to the economic growth forecast to a targeted growth of between 2.8% and 3.5% in 2010 from an earlier forecast in November of between 2.5% and 3.5%.
All the major indices rose with the Dow Jones Industrial Average gaining 0.39% while S&P 500 rose 0.42% to 1,099.51. Nasdaq composite climbed 0.55% higher.
Thursday brings numerous economic readings including the weekly jobless claims, index of leading economic indicators and the January Producer Price Index. The corporate results of Wal-Mart Stores will also be released on the same day.
US light crude oil for March delivery rose US$0.32 to settle at US$77.33 a barrel.
In Singapore today:
Overnight gains on Wall Street, following upbeat US data showing rapidly improving manufacturing outlook in New York, lifted Asian markets. The China and Taiwan markets remained close for Chinese New Year but the Hang Seng rose 1.3% and Nikkei gained 2.7%. The STI added 35.16 points, or 1.3%, to close at 2794.06 but traders pointed to 2800 as the key psychological resistance level. For every stock that fell, 2.1 rose. Turnover was 1.41bil shares with a value of $1.43bil traded.
Encouraging URA data showing private home sales in Singapore of 1,473 units in January, rising for the first time since July 2009, further boosted market sentiment and lifted property shares. But resource stocks were clear standouts, aided by the US dollar's weakness. Straits Asia jumped 12 cents at $2.21 and was tracked by Golden Agric, IndoAgri, Wilmar, Olam, Noble Group and First Resources that rose between 2 and 12 cents.
Expect market sentiment to be dampened by a surprise QoQ 8.9% dip in Singapore’s non-oil exports in January, due to weakness in the volatile pharmaceutical sector. Although exports soared 20.8% YoY in January, the numbers were pale in comparison to those of South Korea and Taiwan which soared 47.1% YoY and 75.8% YoY respectively, signaling that the export recovery in Singapore is still vulnerable. Expect some profit-taking in the local bourse today in the absence of fresh directions.
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Mid Day February 18. STI eased on profit taking.
A jump in the US dollars and the revisit of the Euro dollars to its crisis levels of 1.355 (EUR/USD) caused some panic and had some traders jettison their positions. `Certainly feels dicey and I wonder if Wall Street's lead can be maintained. China could start lower when they open next week' a dealer cautioned. The STI index eased 10.96 points at 2783.10 points on profit taking. For every stock that rose, 2 fell. Turnover was 742mil shares with a value of $612mil traded.
Talks of a contract win boosted the shares of Ezion that rose 3.5 cents at 72 cents. Peer Ausgroup rose 1.5 cents at 58.5 cents on similar speculations. China Fishery Group rose 3 cents at $1.83 after it said its application for a secondary listing in Oslo has been approved. Financial One Corp which is seeking to list a subsidiary in Taiwan rose 4 cents at 50 cents on rumours that it may soon announce further details on the proposed listing. Other advancing issues included Singapore Land, Dairy Farm, Bukit Sembawang, Venture Corp, Falcon Energy, ARA and Sunpower that rose between 1 and 10 cents.
Talks of funds selling took shares of Genting below the psychological $1.00 level to end 3.5 cents down at 98.5 cents on 171mil shares. Other like Jardine Matheson, SIA, DBS, CapitaLand, UOB, ST Engineering, HPL, SATS Services, Olam, Semb Corp and F&N fell between 2 and 80 cents.
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Market close Feb 18. Profit taking wipes out most of yesterday's gains
Some weakness in t he US index futures market, a slight appreciation of the greenback and the revisit of the Euro to its crisis levels of 1.355 ( EUR/USD) caused some panic in the markets today and had some traders jettison their positions. The STI index was in negative territory for most of the day and closed 24.87 points down at 2769.19 points on profit taking. For every stock that rose, 2 fell. Turnover was 1.37bil shares with a value of $1.23bil traded.
Talks of a contract win boosted the shares of Ezion that rose 2.5 cents at 71 cents. Peer Ausgroup rose 1.5 cents at 58.5 cents on similar speeculations. China Fishery Group rose 1 cents at $1.81 after it said its application for a secondary listing in Oslo has been approved.
Financial One Corp which is seeking to list a subsidiary in Taiwan rose 2.5 cents at 48.5 cents on rumours that it may soon announce further details on the proposed listing. Other advancing issues included Singapore Land, Great Eastern, HL Asia, SingTe l and ARA, that rose between 3 and 10 cents.
Talks of funds selling took shares of Genting below the psychological $1.00 level to end 7 cents down at 95 cents on 368mil shares. Other like Jardine C&C, STX Panocean, JMH, SIA, DBS, UOB and IndoAgri fell between 9 and 40 cents.
Labels:
Genting,
Market Update
Wednesday, February 17, 2010
Commodities Push Asian Stocks Higher
Asian markets rallied Wednesday, with resource shares rising sharply on higher commodity prices, while a weaker yen boosted Japanese exporters.
Hong Kong shares advanced as trading resumed for the first time this week after the Lunar New Year holidays, aided by Chinese lenders, which shrugged off the People's Bank of China's decision Friday to increase banks' reserve requirements.
Japan's Nikkei 225 advanced 2.7% for its best single-day percentage gain this year, Australia's S&P/ASX 200 added 2.2%, South Korea's Kospi gained 1.7% and Hong Kong's Hang Seng Index tacked on 1.3%.
Singapore's Straits Times Index climbed 1.3% as trading also resumed in the city-state after Lunar New Year holidays, while India's Sensex also advanced 1.3%. Stock markets in China, Taiwan and Vietnam remained closed. Dow Jones Industrial Average futures were 12 points higher in screen trade.
Concerns about Greece were on the backburner, although European Union finance ministers Tuesday stopped short of an explicit rescue plan for the country. Traders said worries appear to have eased somewhat after the EU gave the fiscally stressed country until mid-March to devise a more comprehensive fiscal consolidation plan for 2010.
Hong Kong shares advanced as trading resumed for the first time this week after the Lunar New Year holidays, aided by Chinese lenders, which shrugged off the People's Bank of China's decision Friday to increase banks' reserve requirements.
Japan's Nikkei 225 advanced 2.7% for its best single-day percentage gain this year, Australia's S&P/ASX 200 added 2.2%, South Korea's Kospi gained 1.7% and Hong Kong's Hang Seng Index tacked on 1.3%.
Singapore's Straits Times Index climbed 1.3% as trading also resumed in the city-state after Lunar New Year holidays, while India's Sensex also advanced 1.3%. Stock markets in China, Taiwan and Vietnam remained closed. Dow Jones Industrial Average futures were 12 points higher in screen trade.
Concerns about Greece were on the backburner, although European Union finance ministers Tuesday stopped short of an explicit rescue plan for the country. Traders said worries appear to have eased somewhat after the EU gave the fiscally stressed country until mid-March to devise a more comprehensive fiscal consolidation plan for 2010.
Labels:
Market Update
17 Feb 10 : Market Rock
Pre-Market Open Commentary for 17 February 2010
DJIA: 10268.81 +169.7
Nasdaq Composite: 2214.19 +30.7
Wall Street returned from the Presidents Day holiday with a bang overnight, led by financial stocks after news that JPMorgan Chase would be buying a joint commodities venture, and Bank of America said it saw gains in the number of modified mortgages on its books. Barclays, a British Bank, also said profits nearly doubled in 2009.
Economic data was also encouraging. The Empire State index, which reflects manufacturing activity in New York State, rose to 24.91 in February from 15.92 previously. This was well ahead of the 19 expected by economists. Consequently, the major indices closed near the day’s highs.
Corporate earnings did not disappoint. Merck reported higher quarterly revenue that was ahead of expectations. Kraft Foods also had higher earnings but revenue came in a bit short of consensus forecasts leading to a slight dip in share price. The group added that the sale of its frozen pizza business to Nestle will cut 5 cents per share from annual profits but the recent purchase of Cadbury will give a boost to long-term growth.
Easing concerns about Greece's sovereign debt helped lift the greenback which partly led to a rise in crude futures. Crude for March delivery rose US$2.88 or nearly 4 per cent to US$77.01 per barrel.
In Singapore today:
Singapore shares will likely open higher today after a long weekend, with sentiment boosted by Wall Street’s firm jump. The benchmark ST Index had closed last week on a cautious note though it recovered 75.3 points or 2.8 per cent for the week to close at 2758.90 points. Volumes had been lower on average last week as the market was expected to trade within a narrow range ahead of the long weekend. This will likely mean some pent up buying is likely today.
Sectors that could see some interest include property – as news reports again reflect buying interest in new launches. Banks too, will get a lift from the improved sentiment.
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Mid day February 17. Surge on Wall Street overnight buoyed Asian markets
A surge on W all Street overnight buoyed Asian markets to a strong open on Wednesday as many markets open after their Chinese New Year holidays. Key Asian bourses knocked up 2 per cent gains as a dip in US dollars favoured risk taking. Commodities and resource stocks featured prominently in the gainer's list as traders `re-stocked' on positions as fears about sovereign debt defaults in the troubled European countries abated. The STI index added 30.18 points at 2789.08 points but traders were quick to point out 2800 as a key psygological resistance. For every stock that fell, 2.5 rose. Turnover was 812mil shares with a value of $772mil traded.
With the Chinese New Year holiday over and as news of the European rescue firmed up, traders are being enticed back into the market. `There is pentup demand on the sidelines and if the US dollars will stay low a while, this bounce could last a few days' a dealer said. Resource stocks were clear standouts, aided by the US dollar's weakness. Straits Asia jumped 12 cents at $2.21 and was tracked by Golden Agric, IndoAgric, Wilmar, Olam, Noble Group and First Resources that rose between 2 and 11 cents.
On the balance, shares of STX Pan Ocean, TPV, Kim Eng, SingTel, Asia Water, Sarin, Creative Technology and CFM eased between 1 and 24 cents.
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Market close Feb 17. STI meets some resistance at 2,800 level
Asian markets got a lift f rom Wall Street‚s buoyant overnight close and enjoyed a strong boost on Wednesday as many markets opened after their Chinese New Year holidays. Key Asian bourses chalked up 2 per cent gains as a dip in US dollars favoured risk taking. Commodities and resource stocks featured prominently in the gainers list as traders `re-stocked' on positions as fears about sovereign debt defaults in the troubled European countries abated.
The STI index added 35.16 points at 2794.06 points but traders were quick to point out 2,800 as a key psychological resistance. For every stock that fell, 2.5 rose. Turnover was 1.4bil shares with a value of $1.43bil traded.
As news of the European rescue plans emerge, traders are being enticed back into the market. `There is pent up demand on the sidelines and if the US dollar will stay low a while, this bounce could last a few days' a dealer said. Resource stocks were clear standouts, aided by the US dollar's weakness. Straits Asia jumped 1 2 cents at $2.21 and was tracked by Golden Agric, IndoAgric, Wilmar, Olam, Noble Group and First Resources that rose between 2 and 12 cents.
On the balance, shares of Shang Asia, Kim Eng, Genting, Asia Water, Sp Land and Sin Heng eased between 3.5 and 20 cents.
DJIA: 10268.81 +169.7
Nasdaq Composite: 2214.19 +30.7
Wall Street returned from the Presidents Day holiday with a bang overnight, led by financial stocks after news that JPMorgan Chase would be buying a joint commodities venture, and Bank of America said it saw gains in the number of modified mortgages on its books. Barclays, a British Bank, also said profits nearly doubled in 2009.
Economic data was also encouraging. The Empire State index, which reflects manufacturing activity in New York State, rose to 24.91 in February from 15.92 previously. This was well ahead of the 19 expected by economists. Consequently, the major indices closed near the day’s highs.
Corporate earnings did not disappoint. Merck reported higher quarterly revenue that was ahead of expectations. Kraft Foods also had higher earnings but revenue came in a bit short of consensus forecasts leading to a slight dip in share price. The group added that the sale of its frozen pizza business to Nestle will cut 5 cents per share from annual profits but the recent purchase of Cadbury will give a boost to long-term growth.
Easing concerns about Greece's sovereign debt helped lift the greenback which partly led to a rise in crude futures. Crude for March delivery rose US$2.88 or nearly 4 per cent to US$77.01 per barrel.
In Singapore today:
Singapore shares will likely open higher today after a long weekend, with sentiment boosted by Wall Street’s firm jump. The benchmark ST Index had closed last week on a cautious note though it recovered 75.3 points or 2.8 per cent for the week to close at 2758.90 points. Volumes had been lower on average last week as the market was expected to trade within a narrow range ahead of the long weekend. This will likely mean some pent up buying is likely today.
Sectors that could see some interest include property – as news reports again reflect buying interest in new launches. Banks too, will get a lift from the improved sentiment.
===
Mid day February 17. Surge on Wall Street overnight buoyed Asian markets
A surge on W all Street overnight buoyed Asian markets to a strong open on Wednesday as many markets open after their Chinese New Year holidays. Key Asian bourses knocked up 2 per cent gains as a dip in US dollars favoured risk taking. Commodities and resource stocks featured prominently in the gainer's list as traders `re-stocked' on positions as fears about sovereign debt defaults in the troubled European countries abated. The STI index added 30.18 points at 2789.08 points but traders were quick to point out 2800 as a key psygological resistance. For every stock that fell, 2.5 rose. Turnover was 812mil shares with a value of $772mil traded.
With the Chinese New Year holiday over and as news of the European rescue firmed up, traders are being enticed back into the market. `There is pentup demand on the sidelines and if the US dollars will stay low a while, this bounce could last a few days' a dealer said. Resource stocks were clear standouts, aided by the US dollar's weakness. Straits Asia jumped 12 cents at $2.21 and was tracked by Golden Agric, IndoAgric, Wilmar, Olam, Noble Group and First Resources that rose between 2 and 11 cents.
On the balance, shares of STX Pan Ocean, TPV, Kim Eng, SingTel, Asia Water, Sarin, Creative Technology and CFM eased between 1 and 24 cents.
====
Market close Feb 17. STI meets some resistance at 2,800 level
Asian markets got a lift f rom Wall Street‚s buoyant overnight close and enjoyed a strong boost on Wednesday as many markets opened after their Chinese New Year holidays. Key Asian bourses chalked up 2 per cent gains as a dip in US dollars favoured risk taking. Commodities and resource stocks featured prominently in the gainers list as traders `re-stocked' on positions as fears about sovereign debt defaults in the troubled European countries abated.
The STI index added 35.16 points at 2794.06 points but traders were quick to point out 2,800 as a key psychological resistance. For every stock that fell, 2.5 rose. Turnover was 1.4bil shares with a value of $1.43bil traded.
As news of the European rescue plans emerge, traders are being enticed back into the market. `There is pent up demand on the sidelines and if the US dollar will stay low a while, this bounce could last a few days' a dealer said. Resource stocks were clear standouts, aided by the US dollar's weakness. Straits Asia jumped 1 2 cents at $2.21 and was tracked by Golden Agric, IndoAgric, Wilmar, Olam, Noble Group and First Resources that rose between 2 and 12 cents.
On the balance, shares of Shang Asia, Kim Eng, Genting, Asia Water, Sp Land and Sin Heng eased between 3.5 and 20 cents.
Labels:
Market Update
Friday, February 12, 2010
Last Dash before Chinese New Year Break
Pre-Market Open Commentary for 12 February 2010
DJIA: 10144.19 +105.81
Nasdaq Composite: 2177.41 +29.54
The US market rallied on Thursday after the European Union reached a deal to provide financial aid to debt-ridden Greece eased concerns of a potential damaging default. The details of the financial aid are not expected to be finalised until next Monday but is likely to involve some form of loans. An upbeat weekly jobless claims report further lifted market sentiment, with the number of new claims for unemployment falling to 440,000 last week, better-than-expectations of a fall to 465,000, from 483,000 the previous week. Continuing claims also came in better-than-expectations, falling to 4,538,000, against expectations of 4.6 mil claims, from 4,617,000 in the previous week. A note of caution is that there could potentially be as many as 150,000 jobs lost in February following back-to-back blizzards in the Northeast region which could keep people home from work or stall hiring.
All the major indices rose with the Dow Jones Industrial Average gaining 1.05% while S&P 500 rose 0.97% to 1,078.47. Nasdaq composite climbed 1.38% higher.
Friday will bring consumer sentiment index reading for February, which is expected to rise to 74.8, from 74.4 in January.
US light crude oil for March delivery rose US$0.76 to settle at US$75.28 a barrel.
In Singapore today:
Mirroring most of the regional markets, the Singapore market advanced when the firmer Euro versus US dollar yesterday signaled that some form of financial aid to debt-troubled Greece could be imminently announced. A lower-than-expected inflation data from China, with consumer prices rising a YoY 1.5% in January compared to a sharp YoY increase of 1.9% in December, also eased concerns over monetary tightening measures in China. The Shanghai bourse added 0.1% while Hang Seng rose 1.85%. The STI index rose 19.24 points, or 0.7%, to close at 2753.63. For every stock that fell, 2.3 rose. Trading activity was thin with turnover of 1.20bil shares with a value of $1.08bil traded.
Resource stocks did well with the lower US dollar. Shares of IndoAgri, Straits Asia, Noble Group, Olam, Wilmar and Golden Agric rose between 1 and 6 cents. Other issues that gained were F&N, SIA, City Developments, SGX, Haw Par, DBS, Great Eastern Holdings, M1, Cosco Corp and Keppel Corp that rose between 2 and 42 cents.
Expect market to be range-bound and trading activity to be light today as investors are likely to shun taking on fresh positions ahead of the Chinese New Year holidays.
====
Mid Day February 12. STI in tight range trading.
US stocks pushed into a positive close after an anemic start, led by energy and materials stocks. Asian markets were mixed as traders tried to read into European bourses that finished lower despite a pledge from the EU leaders to help Greece. `The Euro dollars retreated and European markets fell. Perhaps the recent bounce had discounted this news' a dealer said. The WSJ (Wall Street Journal) online had a sub-header that read " Euro-zone countries will provide coordinated action if needed to preserve stability".
The STI index traded in a tight range and ended 6.62 points up at 2760.25points. Data hawks will be keeping a keen eye on the US retails sales numbers later today. The abbreviated trading week in lieu of the Chinese New Year holidays would mean lesser trading activity as most prefer a clean slate (negligible positions) to start the new year with. `In essence, if we survive the holidays with little downward pressures, we should start next week with a fair amount of pent up buying' a dealer
reckoned.
Olam jumped 13 cents at $2.51 as investors cheered its robust interim results. Other resource stocks like Wilmar, Noble Group and Straits Asia rose between 5 and 10 cents. While a loss had been forecasted, NOL shed 5 cents at $1.66 after it reported its 4Q09 results that fell below expectations.
On the balance, shares of SIA, Kep Corp, RH PetroGas  and SingTel, shed 4 and 44 cents.
=======
DJIA: 10144.19 +105.81
Nasdaq Composite: 2177.41 +29.54
The US market rallied on Thursday after the European Union reached a deal to provide financial aid to debt-ridden Greece eased concerns of a potential damaging default. The details of the financial aid are not expected to be finalised until next Monday but is likely to involve some form of loans. An upbeat weekly jobless claims report further lifted market sentiment, with the number of new claims for unemployment falling to 440,000 last week, better-than-expectations of a fall to 465,000, from 483,000 the previous week. Continuing claims also came in better-than-expectations, falling to 4,538,000, against expectations of 4.6 mil claims, from 4,617,000 in the previous week. A note of caution is that there could potentially be as many as 150,000 jobs lost in February following back-to-back blizzards in the Northeast region which could keep people home from work or stall hiring.
All the major indices rose with the Dow Jones Industrial Average gaining 1.05% while S&P 500 rose 0.97% to 1,078.47. Nasdaq composite climbed 1.38% higher.
Friday will bring consumer sentiment index reading for February, which is expected to rise to 74.8, from 74.4 in January.
US light crude oil for March delivery rose US$0.76 to settle at US$75.28 a barrel.
In Singapore today:
Mirroring most of the regional markets, the Singapore market advanced when the firmer Euro versus US dollar yesterday signaled that some form of financial aid to debt-troubled Greece could be imminently announced. A lower-than-expected inflation data from China, with consumer prices rising a YoY 1.5% in January compared to a sharp YoY increase of 1.9% in December, also eased concerns over monetary tightening measures in China. The Shanghai bourse added 0.1% while Hang Seng rose 1.85%. The STI index rose 19.24 points, or 0.7%, to close at 2753.63. For every stock that fell, 2.3 rose. Trading activity was thin with turnover of 1.20bil shares with a value of $1.08bil traded.
Resource stocks did well with the lower US dollar. Shares of IndoAgri, Straits Asia, Noble Group, Olam, Wilmar and Golden Agric rose between 1 and 6 cents. Other issues that gained were F&N, SIA, City Developments, SGX, Haw Par, DBS, Great Eastern Holdings, M1, Cosco Corp and Keppel Corp that rose between 2 and 42 cents.
Expect market to be range-bound and trading activity to be light today as investors are likely to shun taking on fresh positions ahead of the Chinese New Year holidays.
====
Mid Day February 12. STI in tight range trading.
US stocks pushed into a positive close after an anemic start, led by energy and materials stocks. Asian markets were mixed as traders tried to read into European bourses that finished lower despite a pledge from the EU leaders to help Greece. `The Euro dollars retreated and European markets fell. Perhaps the recent bounce had discounted this news' a dealer said. The WSJ (Wall Street Journal) online had a sub-header that read " Euro-zone countries will provide coordinated action if needed to preserve stability".
The STI index traded in a tight range and ended 6.62 points up at 2760.25points. Data hawks will be keeping a keen eye on the US retails sales numbers later today. The abbreviated trading week in lieu of the Chinese New Year holidays would mean lesser trading activity as most prefer a clean slate (negligible positions) to start the new year with. `In essence, if we survive the holidays with little downward pressures, we should start next week with a fair amount of pent up buying' a dealer
reckoned.
Olam jumped 13 cents at $2.51 as investors cheered its robust interim results. Other resource stocks like Wilmar, Noble Group and Straits Asia rose between 5 and 10 cents. While a loss had been forecasted, NOL shed 5 cents at $1.66 after it reported its 4Q09 results that fell below expectations.
On the balance, shares of SIA, Kep Corp, RH PetroGas  and SingTel, shed 4 and 44 cents.
=======
Labels:
Market Update
Thursday, February 11, 2010
11 Feb 10 : Quiet Market due to Chinese New Year ?
Pre-Market Open Commentary for 11 February 2010
DJIA: 10,038.38 -20.26
Nasdaq Composite: 2,147.87 -3
After two days of technical rally, stocks wavered overnight as investors digested Federal Reserve chairman Ben Bernanke's comments that the US needs to eventually remove the extraordinary reserves it had used to bolster the financial system at the depths of the crisis. Specifically, he said "at some point the Federal Reserve will need to tighten financial conditions." He added that the Fed will do this before it lifts interest rates.
Aside from that, though investors were reassured the Greek debt situation would be rescued, there was some concern this would spread over to some other European countries.
On the earnings front, Baidu Inc reported earnings that were ahead of expectations. Also turning in better numbers were Coca-Cola and Sprint Nextel.
The cold front that is sweeping over the East Coast currently is expected to increase demand for energy. Crude oil for March delivery rose US77 cents to US$74.52 per barrel.
In Singapore today:
Caution prevailed over the Singapore bourse yesterday though anticipation of the bailout news of the troubled European countries helped lift sentiment somewhat. The STI index shed 10.63 points at 2,734.39 points. Market breadth deteriorated toward the close to end flat at best. Turnover was 1.3bil shares with a value of $1.17bil traded.
Besides the short cover inspired bounce, most investors remain wary of the advance and would lean towards staying sidelined. Expect volumes to continue to lighten today as some market participants take time off ahead of the long Chinese New Year weekend looming up. Traders would also be unlikely to take fresh positions given the uncertain market sentiment, and in fact may continue selling speculative counters over these two days.
======
Mid Day February 11. Stocks rose on thin volume.
US stocks lost some ground as investors eschewed on Fed Chairman Bernanke's exit plan. Stocks retreated as traders reacted to plans for a gradual increase in borrowing costs while confidence about a bailout plan for the troubled European countries limited the downside. Asian markets rose tepidly as some stability accompanied some risk taking. The STI index added 15.87 points at 2750.26 points. For every stock that fell, 3 rose. Turnover was light on 608mil shares with a value of $513mil traded.
Stocks rose on thin volumes as investors shunned from taking on fresh positions ahead of the Chinese New Year holidays. `Things are stuttering to a slowdown as investors took stock of the recent action. Looks like we are playing for the Greece event' a dealer said. A tamer than expected Chinese inflation this morning also helped lift sentiments pushed the Chinese index to another day of gain. Resource stocks did well with the lower US dollar.
Shares of IndoAgric, Straits Asia, Noble Group, Olam, Wilmar and Golden Agric rose between 1 and 7 cents. Other issues that gained were F&N, SIA, City Developments, SGX, Haw Par, DBS, Great Eastern Holdings, M1, Cosco Corp and Keppel Corp that rose between 2 and 44 cents.
On the balance, shares of Jardine C&C, Jardine Strategic, UOB, Tee, ASL Marine, EDMI and Singpost eased between 1 and 58 cents.
=====
Market close Feb 11. Short covering behind some of today's trades
Traders saw the firmer Euro dollars as a sign that some help for the troubled European countries would be announced as early as today. Asian markets rose tepidly as some stability accompanied some risk taking.
Traders said short covering was probably the key reason for the firm markets. Dealers said the Chinese New Year holidays coming kept most clients from taking on fresh positions. `We could have some pent up demand and if the weekend turns up fine, investors would return with some serious buying next week'. The STI index added 19.24 points at 2,753.63 points. For every stock that fell, 2 rose. Turnover was light on 1.2bil shares with a value of $1.08bil traded.
Stocks rose on thin volumes as investors shunned taking on fresh positions ahead of the Chinese New Year holidays. `Things are stuttering to a slowdown as investors took stock of the recent action. Looks like we are playing for the Greece event' a dealer said.
A tamer than expected Chinese inflation this morning al s o helped lift sentiments pushed the Chinese index to another day of gain. The Hang Seng index inspired with its 1.85 per cent gain. Resource stocks did well with the lower US dollar. Shares of IndoAgric, Straits Asia, Noble Group, Olam, Wilmar and Golden Agric rose between 1 and 6 cents. Other issues that gained were F&N, SIA, City Developments, SGX, Haw Par, DBS, Great Eastern Holdings, M1, Cosco Corp and Keppel Corp that rose between 2 and 42 cents.
On the balance, shares of Jardine C&C, Jardine Strategic, UOB, Tee, ASL Marine, EDMI and Singpost eased between 1 and 58 cents.
DJIA: 10,038.38 -20.26
Nasdaq Composite: 2,147.87 -3
After two days of technical rally, stocks wavered overnight as investors digested Federal Reserve chairman Ben Bernanke's comments that the US needs to eventually remove the extraordinary reserves it had used to bolster the financial system at the depths of the crisis. Specifically, he said "at some point the Federal Reserve will need to tighten financial conditions." He added that the Fed will do this before it lifts interest rates.
Aside from that, though investors were reassured the Greek debt situation would be rescued, there was some concern this would spread over to some other European countries.
On the earnings front, Baidu Inc reported earnings that were ahead of expectations. Also turning in better numbers were Coca-Cola and Sprint Nextel.
The cold front that is sweeping over the East Coast currently is expected to increase demand for energy. Crude oil for March delivery rose US77 cents to US$74.52 per barrel.
In Singapore today:
Caution prevailed over the Singapore bourse yesterday though anticipation of the bailout news of the troubled European countries helped lift sentiment somewhat. The STI index shed 10.63 points at 2,734.39 points. Market breadth deteriorated toward the close to end flat at best. Turnover was 1.3bil shares with a value of $1.17bil traded.
Besides the short cover inspired bounce, most investors remain wary of the advance and would lean towards staying sidelined. Expect volumes to continue to lighten today as some market participants take time off ahead of the long Chinese New Year weekend looming up. Traders would also be unlikely to take fresh positions given the uncertain market sentiment, and in fact may continue selling speculative counters over these two days.
======
Mid Day February 11. Stocks rose on thin volume.
US stocks lost some ground as investors eschewed on Fed Chairman Bernanke's exit plan. Stocks retreated as traders reacted to plans for a gradual increase in borrowing costs while confidence about a bailout plan for the troubled European countries limited the downside. Asian markets rose tepidly as some stability accompanied some risk taking. The STI index added 15.87 points at 2750.26 points. For every stock that fell, 3 rose. Turnover was light on 608mil shares with a value of $513mil traded.
Stocks rose on thin volumes as investors shunned from taking on fresh positions ahead of the Chinese New Year holidays. `Things are stuttering to a slowdown as investors took stock of the recent action. Looks like we are playing for the Greece event' a dealer said. A tamer than expected Chinese inflation this morning also helped lift sentiments pushed the Chinese index to another day of gain. Resource stocks did well with the lower US dollar.
Shares of IndoAgric, Straits Asia, Noble Group, Olam, Wilmar and Golden Agric rose between 1 and 7 cents. Other issues that gained were F&N, SIA, City Developments, SGX, Haw Par, DBS, Great Eastern Holdings, M1, Cosco Corp and Keppel Corp that rose between 2 and 44 cents.
On the balance, shares of Jardine C&C, Jardine Strategic, UOB, Tee, ASL Marine, EDMI and Singpost eased between 1 and 58 cents.
=====
Market close Feb 11. Short covering behind some of today's trades
Traders saw the firmer Euro dollars as a sign that some help for the troubled European countries would be announced as early as today. Asian markets rose tepidly as some stability accompanied some risk taking.
Traders said short covering was probably the key reason for the firm markets. Dealers said the Chinese New Year holidays coming kept most clients from taking on fresh positions. `We could have some pent up demand and if the weekend turns up fine, investors would return with some serious buying next week'. The STI index added 19.24 points at 2,753.63 points. For every stock that fell, 2 rose. Turnover was light on 1.2bil shares with a value of $1.08bil traded.
Stocks rose on thin volumes as investors shunned taking on fresh positions ahead of the Chinese New Year holidays. `Things are stuttering to a slowdown as investors took stock of the recent action. Looks like we are playing for the Greece event' a dealer said.
A tamer than expected Chinese inflation this morning al s o helped lift sentiments pushed the Chinese index to another day of gain. The Hang Seng index inspired with its 1.85 per cent gain. Resource stocks did well with the lower US dollar. Shares of IndoAgric, Straits Asia, Noble Group, Olam, Wilmar and Golden Agric rose between 1 and 6 cents. Other issues that gained were F&N, SIA, City Developments, SGX, Haw Par, DBS, Great Eastern Holdings, M1, Cosco Corp and Keppel Corp that rose between 2 and 42 cents.
On the balance, shares of Jardine C&C, Jardine Strategic, UOB, Tee, ASL Marine, EDMI and Singpost eased between 1 and 58 cents.
Labels:
Market Update
Wednesday, February 10, 2010
10 Feb 10 : Sold Indoagri for a small profit
A week ago, I bought 5 lots of Indoagri at $1.98. Watched it dropped almost to my stop loss of $1.90. Luckily it never reached. It then rebounded (these 2 days) to $2.04 but never managed to break it.
In the past, I will stubbornly hold on. Today, I got rid of the 5 lots at $2.03. The reason ? Someone told me that in terms of technical analysis the graph of Indoagri is showing a "flag" (?). The basic logic is that the share has dropped into its own little channel but keep failing to break $2.04.
I sold off at $2.03 and watched it drop to $1.99.
Mmm.. Technical Analysis :)
======
Pre-Market Open Commentary for 10 February 2010
DJIA: 10058.64 +150.25
Nasdaq Composite: 2150.87 +24.82
Wall Street staged a rally on Tuesday on heightened speculations that the European officials will rescue Greece from its debt problems. The speculations arose from news that European Central Bank president has cut short a working trip to Sydney to attend the Brussels summit on Thursday to discuss how to manage the growing debt crisis. Additionally, there were reports that Germany is considering a plan to work with other EU members to offer loan guarantees to Greece and other troubled Eurozone countries. The upbeat quarterly results of Walt Disney and Coca-Cola further lifted market sentiment.
Speculations on the Greek bailout overshadowed the less upbeat economic reading on wholesale inventories, which fell 0.8% in December, worse-than-expectations of a 0.5% increase, after rising 1.6% in November, signaling that businesses are not ready to restock inventories.
All the major indices rose with the Dow Jones Industrial Average gaining 1.52% while S&P 500 rose 1.30% to 1,070.52. Nasdaq composite climbed 1.17% higher.
Wednesday brings the corporate results of Sprint Nextel and the weekly crude oil inventories report. On the same day, the US government will also announce the December trade balance and the January Treasury budget.
US light crude oil for March delivery rose US$2.56 to settle at US$73.75 a barrel.
In Singapore today:
Uncertainty surrounding the eurozone’s sovereign debt problems dragged down the Asian markets in early trading on Tuesday but a rise in US stock futures and talks of a bailout plan for Greece eased fears, fuelling a market recovery towards closing bell. The local bourse clawed back early trading losses to post a strong finish. The STI gained 51.4 points, or 1.9%, to 2745.02 as local-bargain hunters returned. For every stock that fell, 1.22 rose. Trading activity was thin with turnover of 1.21bil shares with a value of $1.14bil traded.
Commodity shares recovered from losses on Monday as oil prices rose above US$72 a barrel against a backdrop of potential weakness in greenback. Wilmar gained 23 cents to $6.25, Golden Agri added one and a half cents to 51.5cents while Noble Group gained 5 cents to $2.78. SingTel also ended higher, gaining 8 cents to $3.03 after posting better-than-expected quarterly results.
Expect market sentiment to remain subdued in view of uncertainty surrounding the Eurozone debt woes as there remain growing doubts amongst investors on whether the euro will be able to withstand the potential ripple effect from Greece’s budget problems.
=======
Mid Day February 10. Singapore shares lower on profit taking.
Wall Street rebounded helped by good corporate earnings and short covering sparked by hopes for Greece. Throughout the day there was conflicting reports as to how a rescue package could pan out for Greece and other peripheral European countries. Just before the closing bell, rumours emerged that Germany was considering loan guarantees for Greece and the other troubled European countries. Asian markets were mixed with Singapore shares lower on profit taking. The STI index shed 11.3 points at 2733.72 points. For every stock that fell, about 1.2 rose. Turnover was 705mil shares with a value of $589mil traded.
Talks of the EU help for the troubled European nations may raise risk sentiments and buoy stocks in the near term. Besides the short cover inspired bounce, most investors remain wary of the advance and would lean towards staying sidelined. `I don't think most people would want to carry much positions over the Chinese New Year Holidays' a dealer said. Rising for a second day were shares of Olam, Straits Asia, Noble Group and IndoAgric amid talks of short covering. They rose between 2 and 6 cents.
Others like Swiber, Midas, Ezra, Raffles Education, Venture Corp, SIA, F&N, Hyflux, Sim Lian and Singapore Land rose between 1 and 17 cents. On the balance, shares of UOB, DBS, OCBC Bank, Keppel Corp and Hong Kong Land eased between 2 and 42 cents.
==============
Market close Feb 10. Investors still subdued as long weekend looms
Anticipation of the b ailout news of the troubled European countries put traders on their toes in the afternoon. A firmer end to the Chinese indices and an expected firm European opening helped Singapore shares stay positive amid light trading. The STI index shed 10.63 points at 2,734.39 points. Market breadth deteriorated toward the close to end flat at best. Turnover was 1.3bil shares with a value of $1.17bil traded.
Talks of the EU help for the troubled European nations may raise risk sentiments and buoy stocks in the near term. Besides the short cover inspired bounce, most investors remain wary of the advance and would lean towards staying sidelined. `I don't think most people would want to carry much positions over the Chinese New Year Holidays' a dealer said.
Rising for a second day were shares of Olam, Straits Asia, Noble Group and Wilmar amid talks of short covering. They rose between 1 and 8 cents. Others like Swiber, Midas, Ezra, Raffles Education, Venture Corp, SIA, F&N , Hyflux, Sim Lian and Singapore Land rose between 1 and 30 cents.
On the balance, shares of UOB, DBS, OCBC Bank, Keppel Corp and Hong Kong Land eased between 2 and 30 cents.
In the past, I will stubbornly hold on. Today, I got rid of the 5 lots at $2.03. The reason ? Someone told me that in terms of technical analysis the graph of Indoagri is showing a "flag" (?). The basic logic is that the share has dropped into its own little channel but keep failing to break $2.04.
I sold off at $2.03 and watched it drop to $1.99.
Mmm.. Technical Analysis :)
======
Pre-Market Open Commentary for 10 February 2010
DJIA: 10058.64 +150.25
Nasdaq Composite: 2150.87 +24.82
Wall Street staged a rally on Tuesday on heightened speculations that the European officials will rescue Greece from its debt problems. The speculations arose from news that European Central Bank president has cut short a working trip to Sydney to attend the Brussels summit on Thursday to discuss how to manage the growing debt crisis. Additionally, there were reports that Germany is considering a plan to work with other EU members to offer loan guarantees to Greece and other troubled Eurozone countries. The upbeat quarterly results of Walt Disney and Coca-Cola further lifted market sentiment.
Speculations on the Greek bailout overshadowed the less upbeat economic reading on wholesale inventories, which fell 0.8% in December, worse-than-expectations of a 0.5% increase, after rising 1.6% in November, signaling that businesses are not ready to restock inventories.
All the major indices rose with the Dow Jones Industrial Average gaining 1.52% while S&P 500 rose 1.30% to 1,070.52. Nasdaq composite climbed 1.17% higher.
Wednesday brings the corporate results of Sprint Nextel and the weekly crude oil inventories report. On the same day, the US government will also announce the December trade balance and the January Treasury budget.
US light crude oil for March delivery rose US$2.56 to settle at US$73.75 a barrel.
In Singapore today:
Uncertainty surrounding the eurozone’s sovereign debt problems dragged down the Asian markets in early trading on Tuesday but a rise in US stock futures and talks of a bailout plan for Greece eased fears, fuelling a market recovery towards closing bell. The local bourse clawed back early trading losses to post a strong finish. The STI gained 51.4 points, or 1.9%, to 2745.02 as local-bargain hunters returned. For every stock that fell, 1.22 rose. Trading activity was thin with turnover of 1.21bil shares with a value of $1.14bil traded.
Commodity shares recovered from losses on Monday as oil prices rose above US$72 a barrel against a backdrop of potential weakness in greenback. Wilmar gained 23 cents to $6.25, Golden Agri added one and a half cents to 51.5cents while Noble Group gained 5 cents to $2.78. SingTel also ended higher, gaining 8 cents to $3.03 after posting better-than-expected quarterly results.
Expect market sentiment to remain subdued in view of uncertainty surrounding the Eurozone debt woes as there remain growing doubts amongst investors on whether the euro will be able to withstand the potential ripple effect from Greece’s budget problems.
=======
Mid Day February 10. Singapore shares lower on profit taking.
Wall Street rebounded helped by good corporate earnings and short covering sparked by hopes for Greece. Throughout the day there was conflicting reports as to how a rescue package could pan out for Greece and other peripheral European countries. Just before the closing bell, rumours emerged that Germany was considering loan guarantees for Greece and the other troubled European countries. Asian markets were mixed with Singapore shares lower on profit taking. The STI index shed 11.3 points at 2733.72 points. For every stock that fell, about 1.2 rose. Turnover was 705mil shares with a value of $589mil traded.
Talks of the EU help for the troubled European nations may raise risk sentiments and buoy stocks in the near term. Besides the short cover inspired bounce, most investors remain wary of the advance and would lean towards staying sidelined. `I don't think most people would want to carry much positions over the Chinese New Year Holidays' a dealer said. Rising for a second day were shares of Olam, Straits Asia, Noble Group and IndoAgric amid talks of short covering. They rose between 2 and 6 cents.
Others like Swiber, Midas, Ezra, Raffles Education, Venture Corp, SIA, F&N, Hyflux, Sim Lian and Singapore Land rose between 1 and 17 cents. On the balance, shares of UOB, DBS, OCBC Bank, Keppel Corp and Hong Kong Land eased between 2 and 42 cents.
==============
Market close Feb 10. Investors still subdued as long weekend looms
Anticipation of the b ailout news of the troubled European countries put traders on their toes in the afternoon. A firmer end to the Chinese indices and an expected firm European opening helped Singapore shares stay positive amid light trading. The STI index shed 10.63 points at 2,734.39 points. Market breadth deteriorated toward the close to end flat at best. Turnover was 1.3bil shares with a value of $1.17bil traded.
Talks of the EU help for the troubled European nations may raise risk sentiments and buoy stocks in the near term. Besides the short cover inspired bounce, most investors remain wary of the advance and would lean towards staying sidelined. `I don't think most people would want to carry much positions over the Chinese New Year Holidays' a dealer said.
Rising for a second day were shares of Olam, Straits Asia, Noble Group and Wilmar amid talks of short covering. They rose between 1 and 8 cents. Others like Swiber, Midas, Ezra, Raffles Education, Venture Corp, SIA, F&N , Hyflux, Sim Lian and Singapore Land rose between 1 and 30 cents.
On the balance, shares of UOB, DBS, OCBC Bank, Keppel Corp and Hong Kong Land eased between 2 and 30 cents.
Labels:
IndoAgri,
Market Update
Tuesday, February 9, 2010
09 Feb 10 : Another Triple Digit Dow Jones Last Night
Pre-Market Open Commentary for 09 February 2010
DJIA: 9908.9 -103.84
Nasdaq Composite: 2126.05 -15.07
The US market slipped further, led by Dow, on concerns about the tepid US economic recovery and European debts. Fears that potential debt defaults by Greece might trigger defaults in other European nations including Portugal, Ireland, Italy and Spain continued to weigh on market sentiment. Talks by the finance ministers of the Group of Seven leading economies over the weekend, pledging to continue providing liquidity to sustain economic recovery did little to sooth market concerns.
The Dow Jones Industrial Average lost 1.04% to end below the 10,000 level for the first time in three months while Nasdaq composite fell 0.7%. S&P 500 ended just below breakeven, slipping 0.01 points to close at 1066.18.
On Tuesday, a few major corporations, including Coca-Cola and Walt Disney, are due to report results. The market is also expecting reading on wholesales business inventories for December on the same day.
US light crude oil for March delivery added US$0.70 to settle at US$71.89 a barrel.
In Singapore today:
Debt woes in Greece and potential contagion effect of the rising default risks in other European nations resurfaced to spook markets. The regional markets headed south with Nikkei ending 1.05% lower, Hang Seng falling 0.58% and the Shanghai market giving up 0.14%. The STI bucked the trend, ending 10.06 points higher to 2693.62, led largely by banks. For every stock that rose, 1.71 fell. Trading was listless with turnover of 1.66bil shares with a value of $1.38bil traded as investors stayed on the sideline ahead of the coming Chinese New Year holidays.
Genting Singapore shares started trade at 1030 yesterday as the company used the delay in opening trade to announce that it had been awarded the casino license. The stock opened at $1.16 before retreating to end 2 cents lower at $1.09 on 255mil shares. Dealers attributed this to `buy rumour, sell news'. New listing China Hu An Cable disappointed as it made its debut at 40.5 cents, below its 42 cents offering. It ended at 41 cents on 47mil shares, probably due to the actions of the stabilization manager.
Expect market to consolidate today in light of the lingering debt crisis in Eurozone and weak overnight close in Wall Street. Economic concerns remain at the forefront of investors’ minds and will continue to dampen sentiment. Trading activity is likely to taper off as the Chinese New Year holidays draw closer.
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Mid Day February 9. Investors not in the mood to take on risk.
US stocks surrendered early gains and slipped in the last hour of trade with the Dow Jones Industrials closing below the 10,000 mark for the first time since November 2009. Renewed fears about the sovereign debts of Greece, Portugal and Spain came to the fore even as assurance from the European finance ministers emerged. `I think the fear contagion is spreading fast and investors aren't in the mood to take on risk' a dealer said. Stocks in Asia opened low but were mostly higher on short covering trades. Nimble traders were using any advances to trim positions while most other investors remained sidelined. The STI index bounced off its 2675 low to close the mid day at 2703.25 points, for a loss of 9.63 points. For every stock that rose, 2 fell. Turnover was 690mil shares with a value of $601mil traded.
Singtel reported results that was slightly ahead of consensus on the back of a growth in mobile subscribers. The stock rose 6 cents at $3.01. Other stocks that rose were UOB, China Dairy, LongCheer, SGX, WIlmar and CapitaLand that added between 1 and 20 cents.
Tales of margin call and forced selling weighed on the broader market. Opportunistic traders would resort to intra-day shorting as a form of instant gratification, dealers said. Shares of Straits Asia, Noble Group, IndoAgric, Swiber, Ezra, Ezion, Jardine C&C, DBS, SIA, F&N, NOL and Olam were down between 2 and 64 cents.
=======
Market close Feb 9. STI ends on a firm note despite shaky morning start
The US dollar weak ened from mid morning amid rumours that the European finance ministers may have a solution to tackle the fears about the debt defaults of Greece, Portugal and Spain. The firmer US dollars spurred short covering in Asian markets. Taiwan's Taiex jumped 2 percent, its best one day move in 5 months. The STI index gained 51.4 points at 2,745.02 points, a decent move from its 2675 points nadir. Market breadth improved over the day, with about 1.5 gains for every stock that fell. Turnover was 1.36bil shares with a value of $1.33bil traded. Singtel reported results that were slightly ahead of consensus on the back of a growth in mobile subscribers. The stock rose 8 cents at $3.03.
Resource stocks benefitted from the weaker US dollars and probably rose on short covering. Shares of Wilmar, IndoAgric, Straits Asia, Noble Group, Olam and First Resources rose between 2 and 18 cents.
Other stocks that rose were UOB, SIA, UOL, SGX, Hong Kong Land, Keppel Corp, MCL Land and Goodpack that rose between 3 and 54 cents.
On the balance, shares of Jardine C&C, Singapore Land, Venture Corp, F&N, SIA Engineering and NOL fell between 1.5 and 14 cents.
DJIA: 9908.9 -103.84
Nasdaq Composite: 2126.05 -15.07
The US market slipped further, led by Dow, on concerns about the tepid US economic recovery and European debts. Fears that potential debt defaults by Greece might trigger defaults in other European nations including Portugal, Ireland, Italy and Spain continued to weigh on market sentiment. Talks by the finance ministers of the Group of Seven leading economies over the weekend, pledging to continue providing liquidity to sustain economic recovery did little to sooth market concerns.
The Dow Jones Industrial Average lost 1.04% to end below the 10,000 level for the first time in three months while Nasdaq composite fell 0.7%. S&P 500 ended just below breakeven, slipping 0.01 points to close at 1066.18.
On Tuesday, a few major corporations, including Coca-Cola and Walt Disney, are due to report results. The market is also expecting reading on wholesales business inventories for December on the same day.
US light crude oil for March delivery added US$0.70 to settle at US$71.89 a barrel.
In Singapore today:
Debt woes in Greece and potential contagion effect of the rising default risks in other European nations resurfaced to spook markets. The regional markets headed south with Nikkei ending 1.05% lower, Hang Seng falling 0.58% and the Shanghai market giving up 0.14%. The STI bucked the trend, ending 10.06 points higher to 2693.62, led largely by banks. For every stock that rose, 1.71 fell. Trading was listless with turnover of 1.66bil shares with a value of $1.38bil traded as investors stayed on the sideline ahead of the coming Chinese New Year holidays.
Genting Singapore shares started trade at 1030 yesterday as the company used the delay in opening trade to announce that it had been awarded the casino license. The stock opened at $1.16 before retreating to end 2 cents lower at $1.09 on 255mil shares. Dealers attributed this to `buy rumour, sell news'. New listing China Hu An Cable disappointed as it made its debut at 40.5 cents, below its 42 cents offering. It ended at 41 cents on 47mil shares, probably due to the actions of the stabilization manager.
Expect market to consolidate today in light of the lingering debt crisis in Eurozone and weak overnight close in Wall Street. Economic concerns remain at the forefront of investors’ minds and will continue to dampen sentiment. Trading activity is likely to taper off as the Chinese New Year holidays draw closer.
=====
Mid Day February 9. Investors not in the mood to take on risk.
US stocks surrendered early gains and slipped in the last hour of trade with the Dow Jones Industrials closing below the 10,000 mark for the first time since November 2009. Renewed fears about the sovereign debts of Greece, Portugal and Spain came to the fore even as assurance from the European finance ministers emerged. `I think the fear contagion is spreading fast and investors aren't in the mood to take on risk' a dealer said. Stocks in Asia opened low but were mostly higher on short covering trades. Nimble traders were using any advances to trim positions while most other investors remained sidelined. The STI index bounced off its 2675 low to close the mid day at 2703.25 points, for a loss of 9.63 points. For every stock that rose, 2 fell. Turnover was 690mil shares with a value of $601mil traded.
Singtel reported results that was slightly ahead of consensus on the back of a growth in mobile subscribers. The stock rose 6 cents at $3.01. Other stocks that rose were UOB, China Dairy, LongCheer, SGX, WIlmar and CapitaLand that added between 1 and 20 cents.
Tales of margin call and forced selling weighed on the broader market. Opportunistic traders would resort to intra-day shorting as a form of instant gratification, dealers said. Shares of Straits Asia, Noble Group, IndoAgric, Swiber, Ezra, Ezion, Jardine C&C, DBS, SIA, F&N, NOL and Olam were down between 2 and 64 cents.
=======
Market close Feb 9. STI ends on a firm note despite shaky morning start
The US dollar weak ened from mid morning amid rumours that the European finance ministers may have a solution to tackle the fears about the debt defaults of Greece, Portugal and Spain. The firmer US dollars spurred short covering in Asian markets. Taiwan's Taiex jumped 2 percent, its best one day move in 5 months. The STI index gained 51.4 points at 2,745.02 points, a decent move from its 2675 points nadir. Market breadth improved over the day, with about 1.5 gains for every stock that fell. Turnover was 1.36bil shares with a value of $1.33bil traded. Singtel reported results that were slightly ahead of consensus on the back of a growth in mobile subscribers. The stock rose 8 cents at $3.03.
Resource stocks benefitted from the weaker US dollars and probably rose on short covering. Shares of Wilmar, IndoAgric, Straits Asia, Noble Group, Olam and First Resources rose between 2 and 18 cents.
Other stocks that rose were UOB, SIA, UOL, SGX, Hong Kong Land, Keppel Corp, MCL Land and Goodpack that rose between 3 and 54 cents.
On the balance, shares of Jardine C&C, Singapore Land, Venture Corp, F&N, SIA Engineering and NOL fell between 1.5 and 14 cents.
Labels:
Market Update
Singapore Stock Announcement Dates
| Date | Singapore Company |
| 9-Feb-10 | China Essence 3Q10 |
| 9-Feb-10 | Singtel * 3Q10 |
| 9-Feb-10 | Vicom FY09 |
| | |
| 10-Feb-10 | ASL Marine 2Q10 |
| 10-Feb-10 | C&O Pharma 2Q10 |
| 10-Feb-10 | Chip Eng Seng FY09 |
| 10-Feb-10 | ComfortDelgro Corp FY09 |
| 10-Feb-10 | Ellipsiz 2Q10 |
| 10-Feb-10 | Great Eastern Holdings FY09 |
| 10-Feb-10 | Karin Technology Holdings 2Q10 |
| 10-Feb-10 | Nera Telecommunications FY09 |
| 10-Feb-10 | SBS Transit FY09 |
| 10-Feb-10 | Second Chance Properties 2Q10 |
| 10-Feb-10 | Soilbuild Group FY09 |
| | |
| 11-Feb-10 | Capitaland FY09 |
| 11-Feb-10 | Challenger Technologies FY09 |
| 11-Feb-10 | Cityspring Infrastructure Trust 3Q10 |
| 11-Feb-10 | Eu Yan Sang Int'l 2Q10 |
| 11-Feb-10 | Global Yelllow Pages * 3Q10 |
| 11-Feb-10 | Hiap Hoe FY09 |
| 11-Feb-10 | MFS Technology 1Q10 |
| 11-Feb-10 | NOL FY09 |
| 11-Feb-10 | Olam International 2Q10 |
| 11-Feb-10 | Saizen Reit * FY09 |
| 11-Feb-10 | SSH Corp 2Q10 |
| 11-Feb-10 | Surface Mount Technology 3Q10 |
| 11-Feb-10 | UIS FY09 |
| 11-Feb-10 | WBL Corporation 1Q10 |
| | |
| 12-Feb-10 | Ho Bee Investment FY09 |
| 12-Feb-10 | Kian Ann Engineering 2Q10 |
| 12-Feb-10 | KS Energy FY09 |
| 12-Feb-10 | LMA International FY09 |
| | |
| 14-Feb-10 | Metax Engrg 2Q10 |
| | |
| 18-Feb-10 | Map Technology FY09 |
| 18-Feb-10 | ST Engrg FY09 |
| | |
| 19-Feb-10 | Hotel Royal FY09 |
| 19-Feb-10 | OCBC ** FY09 |
| | |
| 22-Feb-10 | ARA Asset Management FY09 |
| 22-Feb-10 | Cosco Corporatino (S) FY09 |
| 22-Feb-10 | SembCorp Marine FY09 |
| 22-Feb-10 | United Overseas Insurance FY09 |
| | |
| 23-Feb-10 | Broadway Industrial Group FY09 |
| 23-Feb-10 | Del Monte Pacific FY09 |
| 23-Feb-10 | IFS Capital FY09 |
| 23-Feb-10 | Noble Group FY09 |
| 23-Feb-10 | Pan Pacific Hotels Group FY09 |
| 23-Feb-10 | Straits Trading FY09 |
| 23-Feb-10 | UOL Group Limited FY09 |
| | |
| 24-Feb-10 | Macquarie Int'l Infra Fund * FY09 |
| 24-Feb-10 | QAF FY09 |
| | |
| 25-Feb-10 | Allgreen Properties FY09 |
| 25-Feb-10 | Best World Int'l FY09 |
| 25-Feb-10 | City Developments FY09 |
| 25-Feb-10 | China Aviation Oil (S) FY09 |
| 25-Feb-10 | China Sunsine Chemical FY09 |
| 25-Feb-10 | CSE Global FY09 |
| 25-Feb-10 | Eastern Asia Technology FY09 |
| 25-Feb-10 | Eng Kong FY09 |
| 25-Feb-10 | HTL Int'l Holdings FY09 |
| 25-Feb-10 | Indofood Agri Resources FY09 |
| 25-Feb-10 | SembCorp Industries FY09 |
| | |
| 26-Feb-10 | SMB United FY09 |
| 26-Feb-10 | UOB ** FY09 |
| | |
| 1-Mar-10 | Leeden Limited FY09 |
| 1-Mar-10 | Otto Marine FY09 |
| | |
| 4-Mar-10 | Dairy Farm Int'l Holdings FY09 |
| 4-Mar-10 | Hongkong Land Holdings FY09 |
| 4-Mar-10 | Mandarin Oriental Int'l FY09 |
| | |
| 5-Mar-10 | Jardine Matheson Holdings FY09 |
| 5-Mar-10 | Jardine Strategic Holdings FY09 |
| | |
| 16-Mar-10 | Ryobi Kiso 2Q10 |
| | |
| 17-Mar-10 | China Flexible Packaging 1Q10 |
| | |
| * Results will be released in the morning | |
| ** Results will be released during lunchtime | |
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