Wilmar close 7% lower due to investigation for tax-fraud!

On 19/May, Singapore shares end lower Wednesday as German’s action to stop naked short-selling in 10 financials and euro-zone government bonds created fear into investors that more bad news might be coming.

STI ended 69.81 points (2.5%) lower at 2774.54 with higher VOL of 1.5 billion shares traded compared with 1.08 billion shares Tuesday. In the broader market, loser outnumbered gainer 497 to 75. The German actions have driven fears into investors to cause a board based sell down at the higher volume today. STI just close slightly above another technical support at 2765 and may continue to fall if European leaders do not give more details about the decision soon.

Headline in STI

Before market close

It is reported that Wilmar is currently under investigation for alleged tax-fraud of $395 million though they has denied allegations of any collusion with tax officials.

This news has caused a massive sell down of Wilmar to close at $5.76 (7% lower) with HIGH volume of 41.8 million shares traded. There are no major supports within that price range till $5.09 and breaking the support turned resistance at $5.95 will prove to be a ridge task for Wilmar in short term.

Important Resistance of Wilmar: $5.95

Immediate Support of Wilmar: $5.09

MY sentiment on Wilmar: The news may not have deliver to retail investors yet thus we would advise to keep out of this stock at least for this week.

After market close

Singapore's SIA Engineering Co. Ltd. (S59.SG) reported that they had signed an S$42 million agreement with Royal Brunei Airlines to provide maintenance services.