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.

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.