SMRT Corp 4Q Net Profit fell 41.4%!

On 30/Apr, Singapore shares ended higher Friday as solid earnings reports from Wall street overnight lifted major stock in Hong Kong & Singapore. 

STI ended 15.6 points (0.5%) higher at 2974.61 points with 1.82 billion shares traded compared with 1.9 billion Thursday. In the broader market, gainer outnumbered loser 295 to 190.  Without any clear indication on where the market is heading, most investors cautiously stay at the sideline based on the decreasing VOL.

"Concerns over Greece have eased somewhat, but there's hardly any catalyst right now to engage buyers," said a dealer at a local brokerage, adding that trade was "fairly quiet" ahead of the earnings announcements of banks, Singapore Technologies Engineering and Sembcorp Marine next week.

Today SMRT increases 0.9% to close at S$2.28 with 3.19 million shares traded, as investors estimated strong earnings among better economic conditions and higher tourist arrivals due to the opening of Singapore's two casino-resorts. 

However, after the market closed, SMRT announced that its fourth-quarter net profit fell 41.4% due to lower operating profits and higher income tax expenses.

SMRT blames on the volatility in oil prices and termination of government budget measures announced last year.

Important Resistance of SMRT: $2.28

Immediate Support of SMRT: $2.20

RSI: In bullish zone of 74% (Oversold)

MY sentiment on SMRT: Many investors expected good earning results from SMRT instead their profit falls. Expected SMRT to slump next Monday but at min impact since SMRT belongs to “defensive” stock.