Friday, January 24, 2020

STI closed the week at 3240.02, below its current uptrend channel and its 2018 May downtrend channel resistance. Hence, any bearish follow-through, I expect buy zone 3190 to 3216 to be tested before 200ma at around 3175. Note, STI 3190 has been a very important support level, see weekly chart.

STRAITS TIMES   3,240.020   +5.46 (0.17%)
Prev : 3,234.560	High : 3,242.500	Low 3,230.320	Open 3,235.360

Singapore shares up on Friday, drop 1.3% on the week

24 Jan 2020 14:11

By Navin Sregantan

UNDERSTANDABLY, the focal point of market talk this week was on the spread of the Wuhan coronavirus ahead of Chinese New Year.

Harking back memories of 2003's Sars outbreak in Asia, fears of the possibility of a new widespread epidemic kept investors on their toes. But authorities appear more prepared. China has stepped up its efforts by widening a travel ban beyond Wuhan, where the virus originated and has been forthcoming in sharing information with other countries.

The World Health Organization calling the Wuhan virus a local crisis instead of a global health emergency has calmed nerves somewhat.

In a shortened session, the local Straits Times Index (STI) made steady gains across the session to finish at 3,240.02, adding 5.46 points or 0.2 per cent. On the week, it lost 41.01 points or 1.3 per cent from Jan 17's close of 3,281.03.

Elsewhere in the Asia-Pacific, Australia, Hong Kong and Japan were trading higher while Malaysia was slightly lower.

Markets in China, South Korea and Taiwan were closed for the holidays.

In the half-session, trading volume in Singapore clocked in at 1.11 billion securities while total turnover stood at S$760.13 million.

Decliners beat advancers 179 to 155. Thirteen of the benchmark's 30 counters ended in the red.

Thai Beverage was the most actively traded of the STI counters. Shares in brewer turned the corner on a 9 per cent decline over the first four days of the trading week to add 0.5 Singapore cent or 0.6 per cent to 79.5 Singapore cents on 51.8 million shares changing hands.

Among telcos, StarHub added S$0.02 or 1.3 per cent to close at S$1.51 after agreeing to put up a joint-bid with fellow telco M1 for one of the four 5G network licences in Singapore.

On the joint-bid with the Keppel Corp unit, Citi Research analyst Arthur Pineda noted: "On the surface, network sharing should be welcomed by investors as this reduces the risk on earnings and dividends for StarHub."

That being said, Citi has maintained its "sell" recommendation on StarHub on grounds that it will see "sustained earnings pressure on the horizon given challenging revenue trends and network investment costs". Citi has a price target of S$1.22.

M1's parent Keppel Corp edged up S$0.01 or 0.15 per cent to S$6.75 after posting a 42 per cent increase in Q4 bottom line to S$191.4 million on the back of stronger performance from the offshore and marine (O&M), property and investments divisions. Q4 revenue for the conglomerate was S$2.2 billion, up 31.1 per cent year-on-year.

"Looking ahead, the outlook for the company?s business divisions appears robust, property sales should continue its growth trajectory, and we expect O&M to continue its new order win success from 2019," UOB Kay Hian head of research Adrian Loh said. Mr Loh raised his price target for Keppel from S$7.61 to S$7.75 after results were announced.

Source: Business Times Breaking News

Source and recommended reads :

https://sginvestors.io/market/sgx-share-price-performance/straits-times-index-constituents
https://sginvestors.io/market/sgx-breakout-price-3-month-high-volume-above-average
https://sginvestors.io/market/sgx-breakout-price-3-month-low-volume-above-average
https://www.investingnote.com/posts/1798404

Singapore business news

https://www.businesstimes.com.sg/stocks
https://www.straitstimes.com/business/companies-markets
https://www.theedgesingapore.com/

US Indices & stocks performance

https://www.investing.com/indices/

https://money.cnn.com/data/fear-and-greed/

DISCLAIMER:

Hey,

All information updates, tables and charts are for informational purposes only; they are not intended for trading purposes or advice.

We do not and cannot guarantee the accuracy of the information. 

Please consult your broker or financial representative to verify pricing before executing any trade. 

We are not liable for any actions taken in reliance on information contained herein. 

With best regards, 

Martin 

Thursday, January 23, 2020

STI shed 19.37 points on Wuhan virus fears to close at 3234.56.
STI 1st time closing below its parallel price channel bottom of its current uptrend term, since Christmas eve today.

CONSUMER INDEX : STRAITS TIMES 3,234.560   -19.37 (-0.60%)
Prev : 3,253.930	High : 3,259.900	Low 3,231.370	Open 3,251.840+

Singapore shares fall 0.6% as Wuhan virus fears rattle investors
23 Jan 2020 18:25
By Navin Sregantan

WALL Street may have turned in a slightly positive showing on Wednesday thanks to strong earnings by US corporates but regional equity markets failed to follow suit.

Investors in Asia remain unsettled over how the Wuhan coronavirus will spread across the Chinese New Year holidays.

Singapore's Straits Times Index (STI) was mired in the red, closing at 3,234.56 on Thursday, after giving up 19.37 points or 0.6 per cent. North-east Asian benchmarks in China, Hong Kong, Japan and South Korea averaged a 1.5 per cent fall.

The nature of the virus draws parallels to 2003's Sars epidemic and investors are rightfully concerned but Chinese authorities have been steadfast in containing the spread by effectively putting Wuhan in quarantine.

With that in mind, Oanda Asia-Pacific senior market analyst Jeffrey Halley noted Asian market performance "looks more precautionary than panic-driven".

Trading volume continued to be heavy at 2.19 billion securities, 85 per cent over the 2019 daily average. Total turnover was S$1.44 billion, 36 per cent over last year's daily average.

Decliners trumped advancers 285 to 152 while 27 of the benchmark's 30 counters ended in the red.

Thai Beverage was one of the STI's main laggards this week, with its shares down 9 per cent after dipping 0.5 Singapore cent or 0.6 per cent to 79 cents on Thursday.

Nomura analysts attributed the share price underperformance to "profit-taking as well as market concerns over the new law against drunk driving in Vietnam" but added the recent price weakness presented an opportunity to accumulate ThaiBev, which trades at cheaper valuations to peers. Nomura has a "buy" call with a target price of S$1.04.

The Reit (real estate investment trust) earnings season may be underway but market attention was on the latest attempt at consolidation in the sector.

On Wednesday, the STI's CapitaLand Commercial Trust (CCT) and CapitaLand Mall Trust (CMT) unveiled plans to form CapitaLand Integrated Commercial Trust (CICT). Subject to unitholder approval, the combined entity will be the biggest Reit in Singapore and third-largest in the Asia-Pacific.

DBS Group Research analysts Derek Tan and Rachel Tan said: "A bigger platform, CICT will be empowered with greater financial capacity and better ability to compete globally to take on bigger projects and/or redevelopments to drive better returns to shareholders."

Acknowledging that size, scalability and diversification are critical to driving Reit performance, RHB Securities analyst Vijay Natarajan recommended unitholders to accept the offer.

CCT units edged down S$0.01 or 0.5 per cent to S$2.12 while CMT units dipped S$0.02 or 0.8 per cent to S$2.57. CapitaLand, the sponsor of both Reits, fell S$0.04 or 1 per cent to S$3.85.

After posting a 2.9 per cent increase in Q4 distribution per unit to 1.4 Singapore cents, Keppel Reit - likely to be the sole pure play office Reit in Singapore if the CMT-CCT merger goes through, closed flat at S$1.27.

The DBS analysts are bullish on Keppel Reit's prospects as its "long weighted average lease expiry of 4.9 years, strong committed occupancy and the ability to sign higher than market rents are strong attributes of its portfolio". DBS has a "buy" recommendation on the Reit with a price target of S$1.45.

Source: Business Times Breaking News

Source and recommended reads :

https://sginvestors.io/market/sgx-share-price-performance/straits-times-index-constituents
https://sginvestors.io/market/sgx-breakout-price-3-month-high-volume-above-average
https://sginvestors.io/market/sgx-breakout-price-3-month-low-volume-above-average
https://www.investingnote.com/posts/1798404

Singapore business news

https://www.businesstimes.com.sg/stocks
https://www.straitstimes.com/business/companies-markets
https://www.theedgesingapore.com/

US Indices & stocks performance

https://www.investing.com/indices/

https://money.cnn.com/data/fear-and-greed/

DISCLAIMER:

Hey,

All information updates, tables and charts are for informational purposes only; they are not intended for trading purposes or advice.

We do not and cannot guarantee the accuracy of the information. 

Please consult your broker or financial representative to verify pricing before executing any trade. 

We are not liable for any actions taken in reliance on information contained herein. 

With best regards, 

Martin 

Wednesday, January 22, 2020

STI gap down to test its mid-term uptrend channel mid-line and it gained from upwards to close at 3253.93, back above its 2018May Downtrend line again. It is okay to stay sideline as it is only the begining of the new sell theme being play out.

STRAITS TIMES   3,253.930   +6.76 (0.21%)
Prev : 3,247.170	High : 3,258.960	Low 3,240.170	Open 3,242.600

Singapore shares post 0.2% recovery after sell-off on China virus fears

22 Jan 2020 18:27

By Navin Sregantan

THE outbreak of a new coronavirus originating in Wuhan evoked memories of 2003's Sars epidemic, sending Asia's markets lower on Tuesday but they staged a recovery the following day after Chinese officials stepped up containment efforts, easing worries.

With the global economy continuing its recovery, a "Phase One" trade deal in the bag and US-Iran tensions in the rear-view mirror, investors turned to bargain-hunting after the sell-off.

In the Singapore market, the Straits Times Index (STI) - which sank 1 per cent on Tuesday - closed at 3,253.93 after a gain of 6.76 points or 0.2 per cent. Across the market, advancers pipped decliners 209 to 205. Nine of the benchmark's 30 counters ended in the red.

Performance on the STI was muted compared to other Asia-Pacific benchmarks, which were similarly on the mend. Australia, China, Hong Kong, Japan and South Korea were comfortably higher. Bucking the trend was Malaysia's Kuala Lumpur Composite Index, which shed 9.35 points or 0.6 per cent to 1,577.98. Taiwan was closed.

Investors may have taken advantage to pick up stocks at attractive valuations but it is still early days in determining the extent of the outbreak of the Wuhan coronavirus.

If it ends up being labelled an international public health emergency, FXTM market analyst Han Tan noted it could result in "further losses in riskier assets while boosting demand for safe havens".

"If the authorities around the world show signs of failing to contain the coronavirus for an extended length of time, that could prompt a sustained risk-off period in the markets," he added.

Trading volume in Singapore was two billion securities, 70 per cent over the 2019 daily average. Total turnover came in at S$1.09 billion, in line with last year's daily average, suggesting volume was driven by trading in pennies, particularly those of the local market's medical stocks.

Medtecs International was the bourse's most active counter, adding 0.6 Singapore cent or 6.5 per cent to 9.8 cents with 166.6 million shares traded. Over the past two sessions, shares in the provider of healthcare products and hospital services surged 88 per cent from Monday's close of 5.2 cents.

Singapore Exchange market strategist Geoff Howie observed that the combined turnover on the counter over the past two sessions hit S$30 million. At end-2019, Medtecs had a market capitalisation of S$20 million.

Other medical plays also saw keen interest, with Healthway International adding 0.3 Singapore cent or 7.5 per cent to 4.3 cents, and IHH Healthcare gaining S$0.06 or 3.2 per cent to S$1.94.

Meanwhile, contra traders were likely to have taken profit on AsiaMedic Limited (down 0.2 Singapore cent or 11.1 per cent to 1.6 cents) after a 40 per cent jump on Tuesday.

In light of the recent virus outbreak, shares in Malaysian glove maker Top Glove advanced S$0.13 or 7.6 per cent to S$1.84.

Citi Research analysts said in a recent report that the outbreak of the Wuhan coronavirus "may put the Malaysian glove-makers under the spotlight, whose products act as inexpensive protective barriers which could see a surge in sales should the outbreak continue to deteriorate at a global scale leading to a pandemic, particularly with Chinese New Year around the corner".

Further escalation could however support near-term buying interest, particularly the sector bellwethers like Top Glove, Citi analyst Megat Fais said.

Source: Business Times Breaking News

Source and recommended reads :

https://sginvestors.io/market/sgx-share-price-performance/straits-times-index-constituents
https://sginvestors.io/market/sgx-breakout-price-3-month-high-volume-above-average
https://sginvestors.io/market/sgx-breakout-price-3-month-low-volume-above-average
https://www.investingnote.com/posts/1798404

Singapore business news

https://www.businesstimes.com.sg/stocks
https://www.straitstimes.com/business/companies-markets
https://www.theedgesingapore.com/

US Indices & stocks performance

https://www.investing.com/indices/

https://money.cnn.com/data/fear-and-greed/

DISCLAIMER:

Hey,

All information updates, tables and charts are for informational purposes only; they are not intended for trading purposes or advice.

We do not and cannot guarantee the accuracy of the information. 

Please consult your broker or financial representative to verify pricing before executing any trade. 

We are not liable for any actions taken in reliance on information contained herein. 

With best regards, 

Martin 

Tuesday, January 21 2020

STI gap down to start plunging to day low of 3232.99 before some recovery to close at 3247.17. This came after the market gave warning with 2 days' bearish candlesticks of profit-taking as alerted in the blog.
Despite STI rebounded from it current term channel bottom as well as its mid-term uptrend mid-line, it remained below its 2016 May downtrend line. 

STRAITS TIMES   3,247.170   -32.92 (-1.00%)
Prev : 3,280.090	High : 3,275.150	Low 3,232.990	Open 3,271.560

Singapore shares sink 1% on China virus fears, growth worries

21 Jan 2020 18:25

By Lynette Tan

SINGAPORE stocks slumped further on Tuesday, in line with most regional markets, as the emergence of a new virus from China and a sluggish economic outlook weighed on sentiment.

The Straits Times Index was down 1.09 per cent after lunchtime, but eventually regained some ground to close at 3,247.17, down 1 per cent or 32.92 points.

Decliners outnumbered advancers 350 to 138, or about three counters down for every one on higher ground. Trading remained active, with 2.67 billion securities worth S$1.11 billion changing hands.

Linus Loo, head of research at Lim & Tan Securities, told Reuters on Tuesday that concerns over the spread of the coronavirus in China affected market sentiments. "Unfortunately, it's coming at a bad time because it's the travel season in China ahead of the New Year celebrations," he said.

CMC Markets analyst Margaret Yang also thought markets "priced too little in", in terms of the virus spreading across multiple Asian cities from Wuhan, in a situation that harks to the Sars outbreak of 2003.

In addition, the current situation may be worsened by the millions of people travelling across China for the Chinese New Year, she said.

Adding to investors' worries on Tuesday was the International Monetary Fund, which had trimmed its growth forecasts for 2019 and 2020 to 2.9 per cent and 3.3 per cent overnight, in light of a global economic outlook which ?remains sluggish?.

Source: Business Times Breaking News

Source and recommended reads :

https://sginvestors.io/market/sgx-share-price-performance/straits-times-index-constituents
https://sginvestors.io/market/sgx-breakout-price-3-month-high-volume-above-average
https://sginvestors.io/market/sgx-breakout-price-3-month-low-volume-above-average
https://www.investingnote.com/posts/1798404

Singapore business news

https://www.businesstimes.com.sg/stocks
https://www.straitstimes.com/business/companies-markets
https://www.theedgesingapore.com/

US Indices & stocks performance

https://www.investing.com/indices/

https://money.cnn.com/data/fear-and-greed/

DISCLAIMER:

Hey,

All information updates, tables and charts are for informational purposes only; they are not intended for trading purposes or advice.

We do not and cannot guarantee the accuracy of the information. 

Please consult your broker or financial representative to verify pricing before executing any trade. 

We are not liable for any actions taken in reliance on information contained herein. 

With best regards, 

Martin