SIA net profit increase six-fold to S$278 million!

On 21/May, Singapore shares end over 3 months lowest Friday as the constant worries over the impact of the Europe debts on world economics growth dampened the mood of investors.

STI ended 52.31 points (2.1%) lower at 2701.2 (lowest since Feb 8) with LOW VOL of 1.49 billion shares traded compared with 1.74 billion shares Thursday. In the broader market, loser outnumbered gainer 442 to 89. Today STI drift directionless for the whole trading session after a gap down due to HSI closed for public holiday. However it managed to keep itself off the intraday low of 2678.22 with low trading activity to signify the buying pressure from bargain hunters.

CIMB expects to see some bargain hunting but said expects further downside in coming days and does "not advice investors to hold positions over the weekend."

Headline in STI

After market close

Sembcorp Industries Ltd. (U96.SG) reported Friday that they has proposed a tender offer to take over the New York-listed waste water company Cascal N.V. (HOO) at US$6.75 a share

Singapore Airlines Ltd. (C6L.SG) said Friday that their net profit for first three months increased more than six-fold at S$278 million compared with S$42 million a year earlier due to improvement in demand for air transportation. The result was slightly better than the average forecast of S$240 million by five analysts.

Important Resistance of SIA: $14.50

Immediate Support of SIA: $14.02

MY sentiment on SIA: Today SIA managed to close off its low to mark a “hammer” at the important technical support/200 days MA at $14.02 despite huge gap down at STI. SIA has been supported well for the past few days since we can see many “hammers” in prices zone between $14.50 and $14.02 in the daily charts. All these hammers have shown that the investors are still optimized about SIA earning reports and choose to hold their positions instead of selling off. Although SIA beats the forecast but worries over Europe zone debts issues may take precedence over the earning report, thus “sell on earning report” may take place on Monday.