STI update

Let's get back to the main index - Bears win the first round

On my earlier post, i had mentioned about the support of 3144. It was broken down yesterday as you can see from the chart above. The bears had won the first round. On the next days, the battle will be around 3144 before it breaks down further. I am rather bearish at the moment.

SGX

By Charlie Lau Suan Liat

SGX’s trading was halted at $9.54 mid-morning on Friday, October 22, 2010. The announcement that followed was the proposed takeover of the Australian Stock Exchange [ASX].
Halted at $9.54, SGX traded at a Price Earning Ratio of 31.7x. ASX simultaneously halted at A$34.96 on Friday has a Price Earning Ratio of 17x.

SGX has about 800 public listed companies and its market capitalization is about S$10b. ASX has about 3000 public listed companies and its market capitalization is about S$8b.

Singapore Exchange [SGX]

SGX’s offer to takeover the ASX is valued at A$48 – A$22 in cash & A$26 in stocks.
From the chart of SGX it can be seen from the increased trading Volume & Share Price [$7.65 – September 8, 2010] that this ASX takeover started brewing in the first week of September 2010.
From the peak of $10.26 on October 15, 2010, the 14-day Relative Strength Indicator started to turn down. The 5-day Stochastic Momentum also started to turn down. The Share Price already cut the 5-day Moving Average from above, on October 20 at $9.94. This was the first sign of danger that the SGX share price would be down further.
Once the Critical Support of $9.40 is broken, the drop in share price would be drastic, testing other previous Lows.

Do not attempt to “catch a falling knife” by trying to speculate on a technical rebound.

SGX, ASX steal limelight from ADR launch

Extracted from The Edge,

The big news of today was the Singapore Exchange is expected to make a full takeover bid for the Australian Stock Exchange on Monday. SGX is bigger than the ASX with a market value of around $10 billion against A$6.2 billion ($7.9 billion) for the ASX and is also trading on a multiple of 27 times against 17 times for the ASX. According to The Australian, the chairman and CEO will be from SGX and the deputy chairman will be from ASX.

The other big news this week — the 25 bp hike in interest rates in China — may turn out to be a non-event, say some analysts. Nomura Securities says that equity markets ought to have little to fear from the rate hike. “At first sight the rate hike might not appear to be good news for equities, but we think it ought to remove the threat of arbitrary rule changes on sectors that have undermined investor sentiment,” the report states. Indeed, Nomura is bullish on China A-shares. Interestingly, some of their ADRs (American Depository Receipts) started trading on SGX’s GlobalQuote board today.

Unfortunately, dealers reported that in total only $10 million worth of shares changed hands and expectations were too high.

DBS

Take a look at one of the leaders of the bank sector

The price slightly breached $14.36 support in the morning trade. The next support will be $14.10 if the current support is broken. It tells me that the sentiment is changing and the market is heading down. STI touched the near the support of 3144 this morning with a low of 3148. The battle is coming. Which side do u support? Bears or Bulls? Leave your comments.

STI

The real test will come on the following 2 weeks, let's see how much strength the bears have

Beware of the support level of 3144, it may lead out to a major correction. Let's see how good are the bears, going against the bull trend. Across the board, i did not see much damages yet. Let's wait till 3144 level when the battle begin - Bulls vs Bears.

Capitaland

Below is an example of the market moving faster than the news,

Capitaland broke it's support on last Friday before an anouncement on Monday from the government about the tighten measures. The immediate support is $4.03 which i feel it will not hold. The real support come in at $3.87 which is the SMA(100). Any movement back to the 1st support line marks a chance to short.

HongFok

From the papers, we had heard that China had implement some property measures to curb the high prices. It may affect the property stocks in SGX.

I happened to pick out one particular property stock, HongFok. It happened to break out of the $0.605 resistance with volume. So isn't it a contarary to the news?

US dollar

With MAS tightening policy, Sing$ rallied to a new high against the US$

In fact, US index would be testing the trendline as shown on the chart above. It may be a buying chance at the bottom. What do you think about it? Feel free to leave your comments

STI

STI continues to break new high.

It forms a triangle on the weekly chart, so be extra careful. From the chart, we can see that 3240 is the resistance point and also where it touches the upper channel of the triangle. I don't encourage putting money into the market. If it really pull back, you see how deep it is possible to drop back.

Swiber update

Before i post on more counters, let's get updates on the counters that i was focusing

This counter was moving between the trendlines. Which side will it travels? up or down? Let me knows if you see the breakout. Feel free to leave your comments on the movement.

Singtel update

Just to update on the Singtel status:

It keeps testing the $3.07 support which is the SMA(50). I believe it will go down further. With the STI moving up, Singtel went the reverse direction which showed the RS was rather weak. If you intend to vest in Singtel, why not just wait for a while.

Swiber

Watch out this counter, bear or bull?

The breaking of the upper trendline indicates a breakout, so which side do you prefer? If STI continues to hover around 3100 for a while, i will side the bull. If not, just wait for the breakout.

Singtel

Singtel is in some kind of a pullback, as you can see from the chart above. It is now testing the SMA(50) of $3.07. From the support trendline, it looks like the SMA(100) is the true support. Let's wait and see what will happen. Have a nice weekend :)

STI

The Straits Time Index was moving higher and higher with slight pullback. With every pullback, investors/traders rushed in to buy at dip. I felt a bit uneasy in doing so as the STI was forming a bearish flag.

From the above chart, the STI channel was narrowing in a bearish manner. The sentiment of the market was bullish toward the end of this year. I would like to side the bulls but at current state, STI may face a pullback to the lower channel. The PPO was at the 'overbought' condition, anytime may signal a 'sell'. A break of the lower channel will signal a correction ahead. Just be extra cautious if you are a bull at this moment.

Hiap Seng

Just happen to pick up this usual behaviour on Hiap Seng

There was a big buying volume as seen on the chart with a significant gap-up. It pull back after the phenomenon happened. Price to watch - $0.80 which i believe it will be broken in the near future. With STI moving higher and higher, buying become more tricky. Trade on your risk and may money fly into your pocket.