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.