Wilmar close 4.5% lower but keep off its low!

On 20/May, Singapore shares continue to end lower Thursday as the concerns over euro zone debt caused the commodities stocks to hit especially hard.

STI ended 21.03 points (0.8%) lower at 2753.51 with higher VOL of 1.75 billion shares traded compared with 1.5 billion shares Wednesday. In the broader market, loser outnumbered gainer 403 to 109. Today the bears have started to increase their selling pressure with higher volume though STI managed to recoup some of its loss after the Europe markets opens.

"If you go in now, you might just be catching a falling knife," one dealer at a foreign brokerage said.

Headline in STI

Before market close

Today Singapore government has reported that our economy expanded 38.6% for the first three months in seasonally adjusted annualized terms which is much faster than a preliminary reading in April of 32.1% growth.

After market close

Wilmar International Ltd. said that they have ordered four bulk carriers worth US$127.6 million to enhance its logistics operations which will arrive by end of 2011.

Important Resistance of Wilmar: $5.95

Immediate Support of Wilmar: $5.09

MY sentiment on Wilmar: Today Wilmar managed to recover off its low and close at $5.50 to mark a black candle sticks with long lower shadows. However sell down volume is still high with 34.9 million shares traded.

The minor support at $3.49 seems to be able to hold onto the prices well in short term period. Thus for investors who are interested in Wilmar, they can try to buy at $3.49 tomorrow though I would recommend to wait till Monday before making any decisions.