AIO Finance Analysis

DBS ($17.90) was $16.74 then and has also overshot our $18 sell target reaching $18.46. It should find support around $17.50 now and could test the latest highs soon.
UOB ($18.20) was $17.04 and rallied to $18.50 this week. Support is now around $17.70.
SGX ($9.08) remains a tricky stock as it held up well at $8.80-$9 that time but rebounded to only $9.50-65, indicating heightened market uncertainties. It should be a buy around $8.80-90.

Keppel ($10.44) dipped below our $9.80-$10 support to $9.76 and has moved back to old $10.70-$11 support. Buying on weakness towards $10.20 is called for as it could move back to $11.
City ($11.74) was picked at $11.26 and rallied to $12.38 with new higher support now at $11.50-60 and it should rally back to near $12.50 by the results release in a week’s time.
SIA ($15.56) was at $15.26 then, moving up to $16.18 and should continue to be well support at $15.-$15.20. Rebounds to above $16 call for profit-taking.
Source: AMFRASER

ASIAN MARKETS

Asian markets, with the exception of Taiwan, will likely have a rough start following Wall Street’s sharp fall last Friday as a result of warning by American Express of rising credit card defaults, confirming fears of the spread of the credit market contagion. Dow was down nearly 250 points or 1.9%. (KMT, the opposition party in Taiwan, scored a landslide victory at the legislative elections on Saturday, representing a repudiation of incumbent President Chen’s call for a referendum on Taiwan’s UN application. Taiwan’s presidential election will be held on Mar 22nd.

ELLIPSIZ

Ellipsiz warned that profit for H1 ended Dec ’07 will be “significantly lower” than a year ago, when the profit was a robust $10.89 mln. (Profit in H2 ended Jun ’07 had already slipped to $4.14 mln.) Ellipsiz has also appointed Melvin Chan as the new CEO, as Xavier Chong gives up the role to remain as Executive Chairman. Ellipsiz’s share price has dropped 70% since the prospective buyer terminated talks with the company in June; at 30.5 cents, Ellipsiz is at its lowest since 2003.

STATS

Even though the Temasek name would help STATS borrow cheaply, investors were certainly not impressed with its plan to distribute US$813 mln to shareholders, which works out to 37 US cents / Singapore cents per share by taking on more borrowings: the stock rose by “only” 4 cents on Friday before closing 2 cents higher at $1.52.

Assuming the plan goes ahead, STATS’ borrowings will rise to US$1.41 bln from US$683 mln and gross gearing to 2.2x from 0.5x. (As at end Sept ’07, STATS had cash of US$260 mln.) Those hoping to see Temasek take STATS private will just have to wait till the scheme is completed, a process that is likely to take months. (Temasek owns, at the close of its S$1.75 cash offer on May 18 ’07, 1,693,700,099

shares or 83.1% of STATS’ issued capital.)

CHEMOIL ENERGY

Chemoil has appointed Clyde Michael Bandy as Chairman / CEO with immediate effect. Bandy, Lead Independent Director of Chemoil since Aug ’06, has >35 years of experience in the energy industry, mainly with the Texaco / Chevron group. This is positive for Chemoil after the tragic demise of founder Chairman / CEO R Chandran last week, except that investors are likely more interested in the possibility of Chemoil becoming a takeover candidate. As we had commented last week, it may be premature to speculate on this, given the legal

implications arising from Mr Chandran’s demise - bulk of Chemoil Chandran owned are held in a trust.

SIA

Reflecting the first official response to the SIA / Temasek / China Eastern saga, the Xinhua News Agency said on Saturday that China “needs to urgently unify its civil aviation market and create a national network of aviation routes that can act as runway for the country to soar globally”. This is taken to signal the central government’s change of mind, now wanting to consolidate the key domestic players (Air China, China Eastern and China Southern) to create a super-carrier”. An official was also quoted as saying the lack of competition resulting from such a consolidation would not be an issue. This is obviously negative news for SIA as far as its China aspirations go.

Source: Lim & Tan Securities

SIA Engg - TP $4.92

I am neither a pure fundamentalist nor a technician but surely I have a little bit of knowledge on both. I am pretty surprised on the performance of SIA Engg past few days. Puzzled as to why it recoverered while the others have gone down, I tried to look at its chart. This is my first technical analysis on any company, and I shall give a try. Fundamentally I know SIA Engg is a good company.

As you can see, the stock has been hovering around its support and resistance of $4.14 and $4.95 respectively. It seems to have recently rebounded from its support with good volume and macd histogram. Expect the stock to hit $4.90 soon.

(More...)

Source: STI-Stocksinfo

Well, Look What The Cat Dragged In

"We are not considering any other deals and will continue pushing the partnership with Singapore Airlines," said Li Fenghua, president of China Eastern after the vote at a special meeting. In November, Singapore Airlines and its parent, Temasek Holdings, signed definitive agreements with China Eastern to take a 24% stake in the carrier worth HK$7.2 billion or HK$3.80 per share.

The battle between Air China's (0753) parent China National Aviation Corp(CNAC) and Singapore Airlines over SIA's potential partnership with China Eastern Airlines (0670) took a new twist yesterday after China Eastern shareholders voted against the deal.

The deal was voted down yesterday with 77.61% of attending minority shareholders going against it. Altogether, 75% of H-share and 94% of A-share voting power opposed the deal.

Source: Malaysia Finance