Singapore Market
Posted On Thursday, March 27, 2008 at at 2:40 PM by Finance AnalysisSingapore: Singapore market declined following a two day rally. Due to a lack of fresh buying leads, investors chose to lock in profits and wait at the sideline. This is despite the unexpected 10% increase in February factory output. Cues are still heavily dependent on US economic data. FTSE-STI down 4.97 or 0.2% to close at 2,995.22 points. Trading volume was 1.47 billion shares valued at S$1.57 billion and losers outnumbered gainers 370 to 253. Commodities supplier Olam International Ltd suffered a 14.1% lost to S$1.95 after its rating was cut to “sell” from “neutral” by Merrill Lynch.
Wall Street: US market retreated after pessimistic numbers on February’s durable goods orders. The Commerce Department released a 1.7% dip in last month’s order for durable goods, which is indicative on business spending and consumer demand. This is its second consecutive shrink. Adding to worries, the Commerce Department also announced that sales of new homes slumped 1.8% in February, which dragged down sales for the fourth straight month to a 13-year low. Dow Jones slipped 109.74 or
0.9% to 12,422.86 points and Nasdaq dropped 16.69 or 0.7% to close at 2,324.36 points. However, crude oil soared US$4.58 to close at US$105.80 per barrel on NYMEX.
Outlook: The mini-rally that started on Monday and moved the benchmark STI to the 3,000 level is likely to end earlier than our expectation. We have expected the market to rally towards the end of the week on expectation of better Singapore manufacturing number. True, the index for industrial productions has registered another month of double-digit growth, by 10% in February 2008 after growing 12.8% in January (see Chart). However, investors chose to remain at the sidelines pending further development in the US. Thus, the worst-than-expected US durable orders are likely to lead to some profit taking today. The US economy is probably in a recession now. However, the Singapore economy is expected to remain healthy, shown by the latest manufacturing numbers. With the backing of the Singapore economy, buy on weakness will still be the preferred investment strategy.
Source: WestComb
Market News - STI
Posted On Tuesday, March 18, 2008 at at 2:31 PM by Finance AnalysisInvestors should continue to stay defensive heading into 2Q. Our view that the STI has a downward bias to 2530-2650 remains intact. While minor oversold bounces do occur, it’s still a sell-into-strength market.
The clearest indication came last week when the FED’s USD200bil injection into credit markets triggered a 180pts gain from Tuesday’s low of 2794 to Wednesday’s high of 2976 that was all given back by Thursday.
Defensive plays such as telecom (SingTel, StarHub and M1) and consumer staples (SPH, SMRT, SingPost) should hold up well in coming weeks. Outside of these defensive stocks, other index heavyweights are likely to pull the STI lower towards 2530-2650.
The Singapore economy saw earnings rise but productivity dips for first time in six years. Labour productivity slipped 0.9% in 2007 while real earnings rose 4%. Jobless rate is down to a decade low of 1.6%.
Source: DBS Vickers
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Market News - US going to recession again?
Posted On Monday, February 25, 2008 at at 2:32 PM by Finance AnalysisIt seems like Asian stock indexes will be unnerved by fresh signs that the US is tipping into a recession yet again.
Job growth is faltering, oil price raising, consumer confidence plunging. The fallout from the worst housing slump in a quarter-century grows. Wherever you look, the signs are unmistakable that the economy is in trouble. Because of all the bad news, more and more economists foresee the US falling into a recession.
Short term lookout for STI stands at 2780 points with a resistance at will be at 3160 points.
Market News - STI
Posted On Monday, February 18, 2008 at at 9:18 PM by Finance AnalysisSTI range bound from 2650 to 3300 - Sell into strength near 3280
We continue to believe that the 2650 level represents a ‘worst case’ scenario for the FTSE ST Index while rebound upside is capped at 3300. Our base case scenario is for the US economy to slow down to as low as 1% growth during 1H before picking up to 2.5% in 2H.
A range bound pattern between 2650 to 3300 should develop in coming month(s) until data shows the effect of the 125bps by the FED and the US stimulus package filtering down into the economy. Click below for more
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Source: Extraordinary Profits
Performance of STI VS other Stocks
Posted On Sunday, February 10, 2008 at at 2:08 PM by Finance AnalysisFor the past one month STI has drop from 3461pts to a 2931pts, a fall of -15%. However I have heard from people that they are still stuck with their paper lost and are unwilling to sell their stock away. I can only place 15 stocks on the chart below. For the full table, click on read more below .
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Source: STI Stocks Info
Market News
Posted On Thursday, January 10, 2008 at at 10:18 AM by Finance AnalysisNew Revamped STI Index
The new revamped STI index will be launched tomorrow.
The new index will be slimed down to 30 stocks. Some notable companies that have been removed include Creative Technology, Venture Corp and Chartered Semiconductor, either for failing to meet the minimum market cap requirement or because their shares were not sufficiently liquid over the past year. It comes at no surprise as the electronics sector once the pillar of our economy growth is now past its prime. In their place come two hugely popular
New STI Index
Source: The Finance
