On 5/May, Singapore shares continue end lower Thursday for the fourth consecutive days causes by European sovereign debt and concerns over China’s tightening policies might reduce the economic growth.
On Wednesday, market sentiment was badly demoralized as Moody's Investors Service has warned that it could cut Portugal Greece will not accept bailout or the debts rolling over to Spain & Portugal
STI ended 20.66 points (0.7%) lower at 2839.65 points with yet again HIGHER VOL of 2.14 billion shares traded compared with 2.02 billion Wednesday. In the broader market, loser outnumbered gainer 427 to 126. Earlier at 3pm, STI was down as much as 1.6% with only traders buying up at the last hour when the Europe market was about to open.
"It's very rare to see the market fall for five consecutive days within a week. If our observation holds true, then it is left with either today or tomorrow that a minor rebound builds," DBS Vickers advised its clients in a note. "Chances look rather good to trade long on weakness in the current session if one is taking a very short-term view."
Headline in STI
StarHub Ltd. (CC3.SG) reported that its first-quarter net profit drop 48.3%, S$42.7 million compared with S$82.5 million in the first quarter of 2009. They blames on the increasing costs due to the new smart phone business investment.
Noble Group Ltd. (N21.SG) announced that its first-quarter net profit improved 28% on higher returns. The net profit went up to $115 million from $90.2 million a year ago.
Cosco Corp. (F83.SG) said that its net profits drop 4.5% in its first quarter, down to $31.7 million from S$33.2 million a year earlier. Lower dry bulk shipping charter rates and profit contributions for its ship repair was the main causes for this decline.
Important Resistance of Cosco: $1.65
Immediate Support of Cosco: $1.54 (Gap Support)
RSI: In bearish zone of 31% (Oversold)
MY sentiment on Cosco: Expected another round of sell down though the impact might be small in view of the fact that this counter has already been declining since 2 weeks ago.
Important Resistance of STI: 2940 (Support turned resistance)
Immediate Support of STI: 2850 to 2820 (Gap support)
MY sentiment on STI: The selling pressure has increased yet again instead of easing but the gap support of 2820 has been able to hold onto the selling forces. Retain on the view of accumulate stocks around 2800 (Below 2820 can start to buy) but hold on buying if you have limited capital as the selling pressure is still great.
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