Weightage for the 30 STI components stock!

I have just summarized the 30 components stocks that made up Straits Time Index (STI) and their respective weightage based on the market cap as of Jan/10.

Do note that STI is a market capitalization weighted index and thus involves the total market capitalization of the companies weighted by their effect on the index. This means that larger stocks would make more of a difference to the index as compared to a smaller market cap company. (E.g. Capitalland (3.96%) will need to move “3 times more” as compared to Singtel (11.59%) in order to shift the STI)

It is always good to know what are the respective weightage for individual company and their effects on STI especially when trading STI ETF.

SINGAPORE Stocks Earnings Announcement Dates

For this week, we only left quite a few Singapore stocks for earning report. But do lookout for these stock especially Wilmar on 1/Mar (Mon)

Wilmar International Ltd has already reported on Sun that its fourth-quarter net profit rose 18% on year as higher commodity prices led to increased contributions from its oilseeds and grains, consumer products and plantation and palm oil mills operation

Market Outlook (27/02/10) STI seesaw may continue!!

This has been a boring week for trader as STI has been seesawing between the high of 2782 and low of 2732 with less than 50 points difference for the entire week.

Although some news such as Greece's credit spurred the most recent pullback—triggers selling, but other investors quickly step in and take advantage of bargains pushing the stocks up again. One of the reasons that spur these actions is that the Federal Reserve seems intent on keeping interest rates near zero and what will trigger a correction is interest rate increasing. Therefore as long as investor continue to get cheap money, it will be very difficult to hammer this market down. Anyway do look out for more fed exit strategies as times goes and I will post out whenever possible in my blog.

Lastly I would like to point out that STI is currently “matching” HSI index movement. From the start of 18/Feb, STI & HSI seems to be going in the “opposite” direction of US market and HSI is currently undergoing a correction. (See charts above). However I would not worry too much till STI break 2700 support or HSI break 19500 support which may trigger more selling down pressure.

Important resistance of STI: 2825 (Retained previous view)

Immediate Support of STI: 2700 (Retained previous view)

My sentiment: STI will range bound between 2825 to 2700 but do watch out for Fed/China tightening policies.

MY TACTIC: I believe STI @ 2700 is strong support. Therefore I retain my previous view of buying once STI near to 2700. (Watch out once STI near 2800, prepare to sell)

Invitation from Singaporestocks.com.sg!

Dear friends

Dou is very honor to get an invitation from singaporestocks.com.sg to join link list of Singapore bloggers who blog about stocks and investment. Therefore i would be linking them back under important link as well.

Unlike other Singapore forums that usually chit chat, Singaporestocks.com.sg focus alot on technical analysis. In fact they often post charts on Singapore stock to inform their reader the tactics to use and their entry/exit price.

Maybe the admin does not know but in fact i registered their account since i started on trading and learn alot from there.

Do visit them when free to look @ their analysis and post on their forums

http://www.singaporestocks.com.sg/

A day with just big boys fooling around!

On 26/Feb, yet again another boring day with STI ended up 1.71 points at 2,750.86 with 1.28 billion shares compared with 1.27 billion Thursday. In the broader market, gainers overtook losers 299 to 202.

The STI drop to the lowest of 2738.1 in the morning and recover up at the very last 45 mins before the market close. Basically there are no major news today and "Big Boys" are just playing with us by swinging up and down effortlessly due to lack of VOL & direction in the market sentiments.

Today yet another huge selling on Genting @ VOL of 0.24B which break the support @ $0.90.
At this time i would not encourage any entry for Genting as it seems very volatile however there are another STRONG SUPPORT @ $0.85 which i believe can hang on for the time being if interested.

Support turned RESISTANCE = $0.90 (This resistance is going to be strong)
Immediate Support = $0.85.

Do look out for my "Market Outlook" tomorrow as i will do a summary on the market and what to expect in next week.

Greece news causes fear to market!

On 24/Feb, Standard & Poor's warned that the ratings agency may downgrade Greece to a level close to junk within a month and with worries compounded by news about the wide impact of a general strike in that country over the government's proposed austerity measures. The Greek news also fueled a sell-off in the euro against other major currencies.

This news has caused STI to lost 0.47% or 12.99 points to 2749.15 after rising to a high of 2774.09 in early trade with decliner’s outnumbered gainers 281 to 178. Although the VOL is low @ 1.27 billion shares but much higher selling pressure compared to Wednesday's 1.20 billion.

Do watch out for tonight US market as the Singapore market may deteriorates further on Fri. Nevertheless I will not be too worried on the market unless it break 2700 support @ high VOL. (Currently most investors are still at side line)

The selling pressure seems to recover for Genting today @ 0.14B shares traded and close @ $0.91. Note that the support of $0.90 may be re-tested again tomorrow and another round of sell-off may occur if the support break.

Immediate support: $0.90

Next immediate support: $0.85 (Would NOT encourage to q at this price if Genting drop below $0.90)

Watch out for Fed speech tonight!

On 24/Feb, we had another time of boring and choppy trades throughout the whole day. The STI finished 20.41 points, or 0.7% lower at 2,762.14, with low VOL of 1.20 billion shares changing hands compared with 1.19 billion Tuesday. But in the broader market, gainers overtook losers 242 to 195. (Not really a broad based selling).

The market are generally more cautious (Keep sideline) as tonight Fed Chairman Ben Bernanke will testimony before Congress and making fresh calls on the outlook of the global economy & the direction of interest rates.

Nevertheless do watch out for City Dev tomorrow since they will be announcing their earning report before the bell.

High earning boast SembMar stock to the next level!

On 23/Feb, SembMar score a fantastic goal by soaring (+ 7.6%, $3.67) @ high VOL of 32.9 Million. This is due to the announcement that its fourth-quarter net profit more than quadrupled on year to S$297.2 million from S$69.4 million, driven by higher operating margins from rig building projects on Monday. However I would view that the current price is near to the resistance of $3.72, therefore it will not be worth to enter tomorrow due to poor risk and reward ratio.

STI increase by 25.09 to reach 2782.55 (+0.9%) at the end of the day. Overall the market is very quiet at the low VOL of 1190 million and in fact I would see this as a “false rally”. Low VOL and Gainers outnumbered losers 268 to 154 on almost a 1% gain shown that this rally is NOT a board way or any improvement of market sentiments. Overall the market is still cautious as investors look for more cues on the outlook of the global economy.

In addition, do look out for Noble Group who just announced that the net profit for 2009 fell 4 per cent to US$556 million from US$577.3 million in 2008.

Bought City Dev @ $10.18

Today 23/Feb, I managed to get City Dev @ $10.18 as mentioned in my yesterday post on accumulation of property stocks during this sell down.

City Dev earning report will be on 25/Feb therefore I will be holding on to this stock to see if I can develop more profit from there.

STI Report @ 22/Feb

On 22/Feb, STI seems to be directionless in determine where to move due to heavy selling of property stocks kept the index in a range bound and pared its gains. Finally STI plunged swiftly around 415pm and ended flat at 2757.46 due to the sudden drop at the Europe market

Overall the VOL is LOW @ 1121.5 million and it is important to note that this is the THIRD BLACK CANDLES for the past 3 days. No one wants to push the stocks up and profit taking seems to be a logical thing to do nowadays.

I would advise investor to take this opportunity to accumulate some property stocks such as City Developments (-4.8% to S$10.30), CapitaLand (-3.6% to S$3.76) for future investment during this sell down. (Buy when VOL go back to normal)

SINGAPORE Stocks Earnings Announcement Dates

Keep a lookout for stock which approaches the earning report for trading opportunities.

Also watch out for stocks related to Property since the Ministry of National Development announced two additional measures to further cool down the property market on 19/Feb night. (See 2 measures below)

1) A stamp duty payable on properties sold within one year of purchase of 3%

2) A reduction in banking financing quantum from 90% to 80% of Loan to Value.

Head & Shoulders for ST Eng on 20/Feb!!

The news of ST Engineering (S63.SG) having the dividend been cut have caused massive sell down on 18/Feb & 19/Feb respectively. "Dividend cut may cause near-term underperformance; the cut in dividend potentially signals that the 100% payout ratio may no longer be a given," says JPMorgan.
Currently ST is already near to the neckline of the classic pattern “Head & shoulders”. Any sell down beyond this neckline may cause further damage which happens to Genting during last few days.

What do you think? Bearish or bullish?

Market Outlook (20/02/10) Trading in range bound!!

Federal Reserve said on Thursday 18/Feb that they will raise the discount rate to 0.75 percent from 0.5 percent the interest rate it charges banks for emergency loans

This news drove S & P 500 to the lowest of 1101 before the news on the CPI was announced. The Labor Department informs that the Consumer Price Index rose by a smaller-than-expected 0.2 percent in January. In fact the CPI actually dropped for the first time in 27 years when volatile food and energy prices are stripped out. The "core" index fell 0.1 percent.

CPI reports came as a relief for investors since Fed will have to keep rates low for an extended period and causes S & P 500 to soar back to green & finally close flat.

Now back to STI, we are facing the “Great Wall of Resistance” (2825 to 2850) which I do not feel we can break them any time from now. However I also view 2700 as a very strong resistance turned support even though it has been broken once.

Important resistance of STI: 2825

Immediate Support of STI: 2700

My sentiment: STI will range bound between 2825 to 2700 for time being unless bad new occurs

MY TACTIC: I believe STI @ 2700 is strong support. Therefore I retain my previous view of buying once STI near to 2700. (Watch once STI near 2800, prepare to sell).

STI Report @ 19/Feb

On 18/Feb, the Federal Reserve surprised the financial markets by lifting its discount, or primary credit rate, to 0.75% from 0.5% effective on Friday. The Fed said the discount rate hike was the culmination of several recent steps to phase out its emergency lending programs put in place during the financial crisis.

This action has caused a big sell off for Asian market on Fri. HSI drop 528 pts (-2.6%) to 19894 while STI drop to the low of 2727 and managed to re-bound back @ 4pm after observing that Europe market did not have much impact. Finally STI closed @ 2757 (-0.44%) on 19/Feb.

We would need to see tonight US market reaction towards Fed reaction before deciding on the next step.

Immediate Resistance: 2808

Immediate Support: 2735

Next Support: 2700

Genting formed a head & shoulder pattern on 18/Feb!

On 18/Feb, Genting Singapore (G13.SG) tumbles to lowest level since September 2009 by breaking the neckline resistance forming a head and shoulders pattern by closing @ $0.95 (-6.9%) of high VOL 0.37B.

With news of both the casino and the Universal Studio theme park (openings) already reported, Genting would need much positive news to live up to its expectation.

I will suggest keeping out of Genting for the time being and watch the VOL for more indication on entry opportunities. (Avoid high VOL unless it is going up)

Major Resistance: $1.03

Immediate support: $0.90 (Interested party can q at this price)

Next immediate support: $0.855

STI Report @ 17/Feb

STI has gained 1.27% by closing @ 2794 on 17/Feb with 296 gainer vs 143 loser @ LOW vol of 1409.4 million

This sentiment is supported by good gains for HSI, positive lead from U.S. market as effect of recent negative shocks such as Greece debt, China tightening, wanes.

However caution should remain on investor for the sustainability of this rally.

LOW VOL and forming of a Doji candlestick lacks conviction therefore investors who are looking to go long should stay at sideline for the time being.

Major Resistance: 2933

Immediate Resistance: 2808

Immediate Support: 2759

SINGAPORE Stocks Earnings Announcement Dates

Keep a lookout for stock which approaches the earning report for trading opportunities

Singtel may gap down when re-open on 17/Feb!

On 15/Feb, Bharti shares slumped 9.22% in Mumbai trading amid heavy trading volumes, after the company confirmed it was looking to buy most of the African assets of Mobile Telecommunications, or Zain. Bharti is pursuing growth overseas amid price wars and regulatory challenges in the Indian cellular market; its talks with South Africa's MTN Group for a deal valued at $24 billion fell through last year.

As we all know, Singtel hold 32% of Bharti shares therefore GAP DOWN will be expected when market re-open on Wednesday.

A good time to get Genting?

Dear Friends

Genting close @ $1.06 on 12/Feb and it has been correcting since 19/Jan.

Currently Genting is near to the support of $1.02 and it may be a good time to accumulate some of these stocks if interested.

Major resistance: $1.30
Immediate resistance: $1.17
Immediate Support: $1.02

MY TACTIC: Queue to buy @ $1.03 and cut loss if CLOSE @ $1 and below.

Market Outlook (13/02/10) There's still room for correction!!

Dear friends

For the past few weeks starting 19/Jan, stock market has corrected almost close to 9% for STI. I would see this as a healthy correction but not a bear market itself. In fact, I would encourage looking for those strong company and buying them at low price using this opportunities.

On 12/Feb, S & P 500 close @ 1075 forming a possible “hanging man”. This is due to China government has announced the raising for the ratio of reserves banks must set aside by 0.5 of a percentage point to further control China inflation and housing bubble. Depending on the US market situation on Tuesday (Mon is President's Day for US), STI may gap down upon reacting to this news when re-open on Wednesday

In the next few weeks, the stocks market are expected to be volatile especially for commodities stocks such as Noble or Olam since the move made by China , one of the world's biggest consumers of commodities, to slow the pace of bank lending triggered a rally in the U.S. dollar and a sell-off in commodities.

In addition, do look out for stocks relating shipping since NOL has reported a earning loss which could form possible selling pressure to other cargo company as well (e.g. Cosco).

Coming news

Whole week: Progress on the Fed stimulus exit plan and Europe budget plan to save Greece.

Thurs: Crude Oil Inventories (Important news for commodities stock)

Important resistance of S & P 500: 1091

Immediate Support of S & P 500: 1056

MY TACTIC: I just en-cash all my stocks. However I am looking to BUY BUT NOT AT THIS MOMENT. (STI below 2700 or S & P break 1091 then I review again)