SIA and Property Stocks are still a buy!

On 19/Apr, Singapore shares ended lower Monday affected by new concerns about China's property market and uncertainties about the impact of European flight cancellations on certain sectors in Singapore. 

STI ended 46.26 points (1.5%) lower at 2960.93 points with 1.95 billion shares traded compared with 1.85 billion Friday. In the broader market, losers outnumbered gainer 495 to 118.  This is the first time in three weeks that STI almost closed below 2950 but I would not worry too much since the SELL DOWN VOL is not that great.

Financial News

Financial stocks fell across the region after Goldman Sachs shares tumbled 13% Friday, marking its biggest one-day dollar drop in its history. This massive sell down came after the U.S. Securities & Exchange Commission filed civil charges against Goldman for allegedly defrauding investors through use of a financial product tied to subprime mortgages. Later in the weekend, sentiment was further hurt on news that the U.K. and other European nations might also investigate the investment bank in the wake of the U.S. regulators' charges.

Property News

On Saturday, China has announced to introduce more property sector tightening measures in a bid to curb speculation. The new measures include allowing banks to refuse additional mortgages for home buyers who already own two or more properties and permitting local governments to take temporary measures to limit the number of property purchases each investor makes within a certain period.

Airlines News

Today SIA had a massive SELL DOWN and closed at $14.96 with HIGH VOL of 6.88 million shares traded. The prolonged disruption of European air travel due to recent Icelandic volcano eruption has caused Singapore Airlines (C6L.SG) to cancel more than 20 out of 25 daily flights to, from Europe since problem began.

Singapore Airlines has yet to say how much it expects to lose in earnings as a result of the disruptions

Important Resistance of SIA: $15.22

Immediate Support of SIA: $14.76

RSI: Still not oversold despite sell down (42%)

My sentiments on SIA: Encourage to BUY on weakness especially for long term investors. ($14.76 and below will be good price)