Singapore News Highlights : 8th Dec 2014

• Singapore shares opened lower with the STI down 17.16 points to 2,883.76, with oil prices easing again overnight amid concerns of a supply glut and following the US markets slump.

 

• NOL has received S$1.30/sh offer from CMA CGM, at a 6.1% premium over the LTP. 

 

• SGX looking to boost liquidity of its faltering gold contract by extending trading hrs and allowing jewellers and refiners to participate.

 

• Singapore Budget 2016 will be delivered on March 24, 2016.

 

• Ministry of Social and Family Development is proposing changes to the Mental Capacity Act, and it wants public input.

 

• Rowsley will team up with healthcare service provider Thomson Medical Pte Ltd to develop the Vantage Bay Healthcare City project in Iskandar in southern Malaysia, of S$1.67 billion.

 

• MM2 Asia, plans to place out S$5 million in new shares to three investors. 

 

• Cordlife acquired 2,700,000 shares in the share capital of StemLife Berhad, paying S$404,007 at 0.45 ringgit per StemLife share.

Singapore News Highlights: 24th Nov 2015

• Singapore shares were up with the STI up 0.04% or 1.05 points to 2,904.54. 

• KLW shares fall 14% after it announced yesterday that it is under investigation by the Commercial Affairs Department for possible offence(s) under the Securities and Futures Act.

• New Silkroutes Group requested to lift its trading halt, after Malta's Ministry of Energy and Health has become a new shareholder of IEG Malta.

• UOB launched its US$8 billion covered bond programme.

• Noble’s battling criticism of its accounting, may have its credit rating cut to junk by S&P's on concerns about the company's liquidity.

• Kepple Corporation has priced the issue of its S$200 million notes due 2023.

• Subsidiary of Midas won 4 contracts worth S$16.1 million to supply aluminium alloy extrusion for metro trains in China, and airport rail trains in Malaysia.

• Yuan fell to its 3-month low as the central bank weakened the currency's reference rate amid a dollar advance and also due to the concern that China will allow a decline to help its economy.

• Risks for S-Reits will rise in 2016, in view of weak economic fundamentals and new supply that will be added into most sectors.

• Singapore inflation eased last month, to -0.8% as compared with -0.6% in September mainly due to the lower costs of oil-related and retail items.

• The creation of the Asean Economic Community has potentially significant consequences for the Singapore economy.

• USD rose yesterday at economic reports expected to show improvements that could support a Federal Reserve interest rate hike next month.

• National Gallery Singapore,was unveiled by Prime Minister Lee Hsien Loong before it opens to the public from Today.

How does Forex Work?

The foreign exchange market (forex, FX, or currency market) is a global decentralizedmarket for the trading of currencies. This includes all aspects of buying, selling and exchanging currencies at current or determined prices. In terms of volume of trading, it is by far the largest market in the world.

• Forex trading is the simultaneous buying of one currency and selling of another
  
• These two currencies make up what is known as a "currency pair"
  
• Currencies are always traded in pairs - each currency is represented by three letters
  
• The first two letters represent the country and the third letter identifies the currency
  
• Forex pairs are read in the opposite direction of mathematical proportions or ratios
  

For example:
EUR/USD = 1.23700

• The currency to the left of the slash ("/") is called the base currency (in this example, the Euro) and the currency on the right is called the quote currency (in this example, the U.S Dollar)
  
• This notation means that 1 unit of the base currency (that is, 1 Euro) is equal to 1.23700 U.S Dollars
  
• You have to pay 1.23700 U.S Dollars to buy 1 Euro
  
• If selling, the foreign currency exchange rate specifies how much units of the quote currency you get for selling one unit of the base currency
  
• In the above example, you will receive 1.23700 U.S Dollars when you sell 1 Euro
  

When to Buy?

A trader would open a buy position if they believe that the value of that specific base currency would increase.

When to Sell?

A trader would open a sell position if they believe that the value of that specific base currency would decrease.

When can Currencies be Traded?

The spot FX market is unique among the world financial markets in that it's open 24 hours a day, 5 days a week. See the below tables for GMT and EST trading times:

Singapore News Highlights - 19th Nov 2015

• Singapore shares opened higher following the Wall Street's gain on expectations that the Fed would be confident enough about the US economy to raise rates in December.

 

• SIIC Environment Holdings, recorded more than 100.6 million shares, making it the most active counter yesterday.

 

• Cosmosteel posted a 49.3% drop in net profit to S$1 million for the quarter ended Sept 30, 2015.

 

• Sembcorp Marine won a floating storage offloading vessel construction contract from Modec.

 

• Kepple T&T appointed Tan Eng Hwa as CFO & Desmond Gay Kah Meng as CEO.

 

• Air Liquide SA's US$10.3 billion takeover of rival Airgas Inc has given the European company a leading share of the US market in industrial gases amid forecasts of further construction and manufacturing growth.

 

• Oil prices higher as traders weighed a small gain in US inventories and a Federal Reserve report that supported expectations of a December interest rate hike.

 

• USD low against the euro after the minutes of the Federal Reserve's October policy meeting reinforced expectations of an interest rate hike next month.

 

• Due to the recent global developments that aim to clamp down on Base Erosion and Profit Shifting practices of some multinationals, and also increasing emphasis on tax transparency, there is need for Singapore to re-position itself for value creation to fuel its economy's growth.

 

• Fed officials continue to flag December as a likely time for interest rates to rise after 7 yrs near zero & expressing confidence they will be able to pull off a rate hike smoothly despite fears of an abrupt market reaction.

 

• SGX partnered EBS BrokerTec, ICAP's electronic FX and fixed income business, to launch SGX-listed FX block futures on EBS BrokerTec's FX central limit order book- EBS Market, a primary venue for e-traded currencies.

Four Pros of trading in FX market acting oneself as a profitable Forex Signal

1. Liquidity in forex trading is money making forex signal that allows traders to gain profit potential. Due to liquidity in FX market, it’s become easy to enter & exit the position.

2. There is no fix time to begin trading in FX market, trade whenever you want. Forex market allows traders to trade from Sunday 5 pm EST till Friday 4 pm EST.

3. The FX market provides Hedging which is a profitable currency trading signal by fixing the exchange rate at which the transaction concludes in the future. To complete this Hedge, the traders buy or sell currencies through ‘Swap’ instrument (a kind of derivative instrument that allows counterparts to exchange cash flows on the basis of specific time).

4. Hedging is also implementable from future markets depending on the size of trade & the amount of currency involved in it. It’s better to get Forex trading signal when implementing hedging.

Four Stock Trading Picks to Trade in a Streamlined Manner

When it comes to build-up the wealth through equity investment, understanding the financial aspect is an integrated part to follow. Besides the understanding part of financial terms, investors must have to invest capital according to market condition & stock picking strategy. The blog uncovers how to pick the stock in order to achieve maximum returns:

a. While picking stocks, quantifiable aspects of making profit potential is executable through proper stock trading signals, but there is several information which are indefinable & cannot be measured. By focusing on quantifiable aspects make stock picking more effective instead of spending time on getting indefinable information.

b. There are several reasons for stock prices to get fluctuate. Speculation through media, opinion of investors, risk aspects, supply & demand and presence of various suitable alternatives are some reasons that make stocks to fluctuate. Trading by focusing on your own investment goals must be followed. Considering stock picks would be supportive to trade in a streamlined manner.

c. Comparison of stock price notifies you the position of stock i.e. over-valued or under-valued. Comparison of the stock price must be done either through the revenue earnings or cash flow. While examining the performance of company, getting stock price position is one of the helpful stock signals to consider.

d. Traders, who are newbie should initiate with a small capital and proceed as per the experience. Your initial target should have criteria for picking good & valuable stocks to get most of investment.

Singapore News Highlights - 5th Nov 2015

• Singapore shares opened 0.29 per cent or 8.82 points lower at 2,989.68 despite Asian stocks edging higher elsewhere in the region, consolidating recent rises on late gains in Wall Street on Friday and a rebound in the commodities complex.
• Asian stocks climbed after biggest weekly rally since Dec 2011.
• SGX is reviewing companies' compliance with CG Code.
• China Sky's non-executive chairman has resigned.
• Tee International's Q1 profit went up 23.6%.
• SIA plane had collapsed at Changi Airport gate after nose gear retracted during landing gear check.
• OKP unit has won S$12.7m JTC contract.
• Oil edged up on lower US rig count, & weaker dollar.
• IMF urgeed Japan to proceed with second sales tax hike.
• Fed should not raise interest rates just yet- as said by China Finance Minister

Singapore, Hong Kong budgets unveil divergent responses to intensifying challenges

Singapore is big on welfare, while Hong Kong is propped up by tax cuts.

Regional powerhouses Singapore and Hong Kong last week unveiled divergent responses to the intensifying challenges of rising income disparity, the need to strengthen the supply side to underpin growth, and aging populations.

According to Fitch Ratings, Singapore is adopting a more explicitly redistributionist fiscal policy while Hong Kong is introducing tax cuts as part of its latest budget round.

The emphasis of Singapore's growth policy seems to be on strengthening total factor productivity, partly through fiscal incentives. These include extending a wage credit scheme and corporate income tax rebates.

Hong Kong's approach is to boost infrastructure expenditure to deepen the capital stock, while letting the supply side take care of itself to a greater degree. The government's long-term fiscal plan calls for capex to rise by a compound annual growth rate of 9.9% from FY15 to FY19.

Fitch's analysis suggests Hong Kong is spending slightly less on identifiable social items as a percentage of GDP than in 2000, whereas in Singapore the percentage is about the same. The share of expenditures on social items in both has been rising in recent years after dipping in the early 2000s.

Nonetheless, the fiscal positions for both cities are likely to remain significant sources of credit strength over the medium term.

Fitch expects that policymakers will continue to place a high priority on long-term fiscal sustainability.
Hong Kong continues to forecast surpluses through to FY20, which means it will accumulate fiscal reserves in nominal terms over the medium term.

In Singapore, the budget plan includes a deficit of SGD6.7bn in FY15, however non-budget sources of revenue will mean that the overall general government balance will remain in surplus.

It is also notable that both governments have a tendency to budget on the conservative side, and have historically outperformed their fiscal plans. In the case of Singapore, the fiscal balance has outperformed the budget for the past 11 consecutive years.

STI MARKET REVIEW- 5th Oct 2015

Singapore’s benchmark Straits Times Index opened today at 2,778.59 points, up by 1.21 per cent or 33.92 points and ended 58.10 points or 2.08% higher to 2851.25. STI came off from its intra-day peak of  2851.25 and  low of  2822.28 Wall Street's unexpected bounce on Friday helped add some stability to Asian markets on Monday, enabling the Straits Times Index (STI) to jump 58.1 points or 2.1 per cent to 2,851.25. Turnover however, remained low and concentrated in the 30 index stocks - the entire market traded just 1.1 billion units worth S$942 million of which S$697 million or 74 per cent was generated by STI components.

LOCAL BOURSE  
                                                                        
Singapore Exchange (SGX) has launched a new index business, SGX Index Edge, that will offer comprehensive services aimed at addressing the rising demand for index-linked investment in Asia.

Market forecast:

STI is expected to be bullish tomorrow. STI has the resistance at 2860. If it breaks this level it is expected to go up till 2875. STI has its support at 2820. The bullish trend is supported by weak U.S. job data  which has eased out the fear of U.S. rate hike by FED.

STI COUNTER SPECIFIC NEWS    

• Ascendas Reit has kicked off bookbuilding on its much-anticipated Singapore dollar perpetual non-call 5, with guidance offered in the 5 per cent area.
• OSIM International is down 1.23% at $1.605 after Taiwan's Food and Drug Administration reportedly found excessive levels of pesticide residues in OSIM's majority-owned TWG Tea's "Chamomile Green Tea" that was exported from India.
• Two senior US-based energy executives have left commodity trader Noble Group in the past week.

GLOBAL FACTORS AND WORLD INDICES:

• Hong Kong stocks bounced sharply on Wednesday from the previous session's two-year lows, wrapping up a tumultuous quarter in which the benchmark Hang Seng Index plunged more than 20 per cent. At market close, the Hang Seng was up 1.4 per cent, to 20,846.30, while the China Enterprises Index gained 1.9 per cent, to 9,405.50 points.
• China's stocks rose, paring the biggest quarterly loss since 2008, as the government struggled to halt a US$5 trillion rout and the world's second-largest economy showed signs of a sharper slowdown.
• European stocks advanced, rebounding from Tuesday's decline, as investors paused to assess value in what is heading for the worst quarter in four years. The Stoxx Europe 600 Index jumped 1.8 per cent to 345.43 at 8:07 am in London.
• Nikkei The pan-European FTSEurofirst 300 index rose 2.2 per cent. The euro zone's blue-chip Euro STOXX 50 index advanced 2.5 per cent.
• Hong Kong stocks closed 1.62 per cent up on Monday. The benchmark Hang Seng Index gained 348.41.79 points to end at 21,854.5.

STI MARKET REVIEW - 1st Oct 2015

STI MARKET REVIEW :

Singapore benchmark Straits Times Index (STI) opened at 2,800.54 points, up 9.65 points or 0.35 per cent, after US stocks gained the previous night and ahead of the release of China's official purchasing managers' index (PMI) data, a manufacturing gauge and ended 11.51 points or 0.41% higher to 2772.36. STI came off from its intra-day peak of 2799.80 and low of 2772.36

Singapore stocks posted gains midday on better-than-expected economic data out of China. China's official Purchasing Managers' Index climbed to 49.8 in September, compared with a median estimate of 49.7 in a Bloomberg poll, as well as an August reading of 49.7.

LOCAL BOURSE

Singapore home prices dropped for an eighth quarter, matching the longest losing streak in 13 years, as tighter mortgage curbs cooled demand in Asia's second-most expensive housing market.
An index tracking private residential prices fell 1.3% in the three months ended Sept. 30 from the previous quarter. The slump was the most since June 2009, in the aftermath of the global financial crisis.

Market forecast:

STI is expected to be positive tomorrow as China’s official Purchasing Managers' Index has come better than expected. STI has the support level of 2778. STI has its resistance at 2828.

STI COUNTER SPECIFIC NEWS

• Singtel's Thai associate Advanced Info Service Public Company Ltd has submitted for arbitration, on Sept 30, a claim for 70 billion baht (S$2.7 billion) from Thai state-owned telco TOT Public Company Ltd.
• QT Vascular has successfully defended itself against a patent infringement lawsuit filed by another medical company- AngioScore.
• ST Engineering CEO will retire next year.
• Hong Leong Asia expects to post a loss for its third quarter and nine months ended Sept 30.

GLOBAL FACTORS AND WORLD INDICES:

• European shares rose on Thursday, buoyed by a further rebound for mining and trading company Glencore after a painful sell-off earlier in the week and bid talk for German salt and fertilizer company K+S
• Malaysian shares closed higher on Thursday, with the Kuala Lumpur Composite Index gaining 12.89 points to 1,633.93. Some 1.52 billion lots, valued at RM 1.82 billion, were traded. Gainers out numbered losers 465 to 306.
• Australian shares closed higher for a second session on Thursday, continuing to recover from a recent slide to a two-year low with the help of solid gains in the financial sector. The S&P/ASX 200 index put on 1.8 per cent, or 90.5 points, to 5,112.1, pulling further away from a trough of 4,918.4 set on Tuesday. The index has gained nearly 4 per cent in the past two sessions.

Forex And Comex Report-30th Sept 2015

EUR/USD

EURUSD fell slightly during the day on Wednesday, after making a Doji on the daily chart. Though the pair is in the up trend so we believe that the pair will bounce back around 1.1295 level. With the next daily and monthly candle we feel market may give some consolidation range so we can be short term traders in this market.

GBP/USD

GBPUSD rose during the day as the quarter on quarter Final GDP came out. Also, the pair has changed the trend with the Doji on the daily chart. We now feel that it is only a matter of time that the pair will reach 1.53 level. The monthly candle is also expected to change the trend and take the market up.

AUD/USD

AUDUSD went up and forth during the day slicing towards 0.7030 level. The 0.7045 level is giving massive resistance so if we break this level we may head up to 0.7135 level to the up. Though the pair is in the longer term down trend, we believe that with the new monthly candle we may change the trend. If not, we are longer term sellers below 0.69 level.

NZD/USD

NZDUSD rallied during the day, trying to reach 0.6400 level. Looking at the 4 hourly chart, the pair is in the up trend so if we cross 0.6400 level we are buyers for the short term. The pair is in the longer term down trend so with the next daily and monthly candle we may get a clear picture that whether the pair is changing its trend or it will continue to be in the longer term down trend.

STI MARKET REVIEW - 28th Sept

Straits Times Index (STI) opened on Monday slightly lower at 2,828.07 points, down 4.57 points or 0.16 per cent and ended 40.72 points or 1.44% lower to 2780.74. STI came off from its intra-day peak of 2829.64 and low of 2780.74.

Singapore stocks sank in first half of Monday session as worries build about global growth and volatility spilling out from China. STI kicked off the week on a distinctly poor note, dropping 40.72 points or 1.4 per cent to 2,791.92, its lowest close since June 2012.

LOCAL BOURSE

Singapore's manufacturing sector continues to be a negative in the economy in third quarter of 2015. The headline inflation forecast for Singapore at between -0.5% and 0% for 2015.

Singapore inflation fell 0.8 per cent in August compared to a 0.4 per cent slide in July.

Market forecast:

STI is expected to consolidate with bearish sentiment as technically market has fallen more than 20 percent which is generally taken to be an indicator of a bear market. STI has broken the crucial support level of 2800. STI has its next support level at 2768. If it breaks this level it might falls upto 2735. Investor sentiments are cautious over the slowdown of china’s economy as data showing China industrial profits has fallen 8.8 per cent.

STI COUNTER SPECIFIC NEWS

• Olam International, a commodity trader controlled by Singapore investment company Temasek Holdings, plans to more than double coffee-plantation acreage in Africa to improve quality control on the continent.
• Sunright has reported a increase in net profit to S$3.1 million for its full year ended July 31, 2015
• CMC Infocomm Ltd won S$4 million worth of contracts from Singapore telcos.

GLOBAL FACTORS AND WORLD INDICES:

• The Straits Times Index on Monday kicked off the week on a distinctly poor note, dropping 40.72 points or 1.4 per cent to 2,791.92, its lowest close since June 2012.
• Malaysian shares closed lower on Tuesday with the Kuala Lumpur Composite Index slipping 6.58 points to 1,608.43. Some 1.64 billion lots, valued at RM1.55 billion were traded. Losers outnumbered gainers 412 to 366.
• Chinese stocks rose, paring the benchmark index's biggest quarterly loss since 2008, as a rally for technology companies overshadowed a report showing industrial companies' profits dropping the most in at least four years. The Shanghai Composite Index climbed 0.3 per cent to 3,100.76 at the close, erasing a loss of as much as 1.6 per cent.
• Tokyo shares closed 1.32 per cent lower Monday as the yen strengthened and an ex-dividend issue affecting Topix-listed firms weighed on sentiment. The benchmark Nikkei 225 index shed 235.40 points to end at 17,645.11, while the broader Topix index of all first-section shares was down 1.04 per cent, or 15.14 points, at 1,438.67.
• Asian stocks sagged on Monday after Wall Street's uninspiring Friday performance and ahead of key economic indicators, while the dollar consolidated its gains against the yen and euro.
• Prices of completed non-landed private homes in Singapore fell 0.6 per cent in August 2015 over July, according to the National University of Singapore (NUS) flash estimate for its Overall Singapore Residential Price Index (SRPI) released on Monday.
• Competition authorities in Switzerland announced an investigation into some of the world's biggest banks, including HSBC Holdings Plc, on suspicion that they colluded to manipulate the prices of gold, silver and other precious metals.
• Oil halted its advance near US$45 a barrel as a drop in Chinese industrial companies' profits signaled demand may be weakening in the world's second-biggest consumer.
• Indonesia stock index fell 1 per cent on Monday, extending its losses to a fifth day and reaching its lowest point since Aug 26.The index lost 3.9 per cent between Tuesday and Friday, as the rupiah continued

Weekly Technical view on STI : 21st Sept 15 to 25th Sept 15

Weekly wrap of STI:

Straits Times Index (STI) opened at 2855.04 ie., 24.55 or 0.85% lower and ended at 2832.64 ie., 46.95 points or 1.63% lower to 2832.64 this week. STI came off from its weekly peak of 2904.98 and low of 2816.76.
Singapore's August industrial production data due later today will likely hint at a risk of a technical recession, says DBS. A technical recession occurs when there are two consecutive quarters of decline in gross domestic product. According to prediction a 6.8% on-year decline in industrial output in August.



LOCAL BOURSE

Factory output contracted for the seventh consecutive month in August, performing worse than private-sector forecasters had expected. The latest manufacturing data, which showed output sliding 7% last month from a year ago, came in below the 5.3% decline forecast.
Consumer confidence in Singapore fell 0.9 point to 129.6 in September on heightened concerns about the economy in the next five years.
TI remained in negative sentiment this weak. It is expected to consolidate next week. It has it weekly support at 2800. STI may take reboud after taking support at 2800. Concern over US interest rate has increased after FED officials and Janet Yellen made a statement supporting rate hike by the end of this year. Market sentiment over slowdown of China’s economy is also negative.

TI COUNTER SPECIFIC NEWS :

• IPS Securex Holdings has placed out 8.9 million shares to "certain institutional investors" at 71 cents per share to raise $6.32 million.
  
• Ezra Holdings says Capt. Adarash Kumar Chranji Lal Amarnath has stepped down as group chief operating officer and executive director of the company effective Friday. His resignation is in compliance with the Code of Corporate Governance 2012 of having independent directors making up at least half of the board.
  
• Emas Offshore named Ezra ex-COO as CEO.
  
• NOL couldn't explain high volume, except maybe market talk of Temasek selling stake.
  
• Olam Intl is eyeing at US$2.72bn opportunity for acquisitions from commodity crisis.
  

GLOBAL FACTORS & WORLD INDICES:

• Shares in Hong Kong ended the week on a high Friday after tumbling more than three per cent in the previous two sessions but ongoing concerns about China's economy saw Shanghai check out with heavy losses. Hang Seng Index added 0.43 per cent, or 90.34 points, to close at 21,186.32.
• The pan-European FTSEurofirst 300 index, which had fallen 2.1 per cent on Thursday, climbed back up 2.2 per cent in early trading, while the euro zone's blue-chip Euro STOXX 50 index also advanced 2 per cent. Nevertheless, the FTSEurofirst was still down 2.3 per cent from the end of last week.
• The CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 1.6 per cent, to 3,231.95, while the Shanghai Composite Index lost 1.6 per cent, to 3,092.35 points.
• Australian shares fell 0.6 per cent on Friday led by losses in banks after US Federal Reserve Chair Janet Yellen said she expects the central bank to begin raising rates later this year. The index ended the week down 2.5 per cent, after two straight weekly gains. It has lost 3.2 per cent in September so far, after falling 8.6 per cent in August - its worst monthly performance since the global financial crisis.
• Tokyo shares gained 1.76 per cent Friday, shrugging off a weak inflation report after Federal Reserve Chair Janet Yellen hinted at a US rate hike by the end of 2015.
• Taiwan stocks were up slightly on Friday after the central bank cut its benchmark interest rate for the first time since 2009 as the island's export-driven economy faces headwinds from a China-led global economic slowdown.
• Indonesia's economy is expected to grow at more than 5 per cent in the fourth quarter, a central bank official said on Friday, adding that gross domestic product was expected to expand at an annual 4.9 per cent pace in Q3.
• Gold dropped from its highest in a month on Friday as the dollar rallied on an assurance from Federal Reserve chair Janet Yellen that the US central bank would begin raising rates this year.
• Oil markets remained subdued in early trading in Asia on Friday after weak data from Japan reinforced concerns over global economic growth.

Singapore News Highlights - 23rd Sept 2015

• Singapore share prices opened lower with the Straits Times Index (STI) down 11.23 points or 0.39 per cent to 2,857.24
• Asian shares slipped on growth anxiety focus now shifts to China PMI.
• Asian futures point to more stock losses before China factory PMI
• Rowsley has decided not to wait for the Iskandar residential market to recover.
• YuuZoo Corporation is appointing James Sundram as chief executive officer, from Oct 1.
• SGX could face toughest questions yet at an annual shareholders' meeting as pressure mounts to find new sources of revenue.
• DBS will introduce cashless options through mobile app to F&B outlets in Singapore.
• NOL couldn't explain high volume, except maybe market talk of Temasek selling stake
• Industrial Reit in Singapore will remain resilient in the face of the current economic slowdown, underpinned by its "robust" financial profiles.
• Oil moves up on falling US inventories.
• De Beers has pushed gift-giving to halt China's diamond slowdown.
• Gold retains losses as firmer dollar.
• Dollar rises as Fed seen hiking rate this year.
• Impact of China slowdown is bigger than expected :IMF

STI MARKET REVIEW - 22nd Sept 2015

Singapore share prices opened higher on Tuesday with the Straits Times Index (STI) up 11.13 points or 0.39 per cent to 2,890.11 and ended 12.58 points or 0.44% higher to 2869.69. STI came off from its intra-day peak of 2890.11 and low of 2862.72.

Singapore equities inched up at noon, with no clear direction to trading and little in the way of local new cues. STI rose 0.42% to 2,894.40. Market breadth was positive. However, later in the day STI was dragged in red through heavy selling in the market.

LOCAL BOURSE

Singapore's GDP grew at a slower pace of 1.8% on-year in the second quarter, from 2.8% in the first quarter. On a quarter-on-quarter seasonally-adjusted annualized basis, the economy contracted by 4.0%, a reversal from the 4.1% growth in the preceding quarter.

Singapore is experiencing hazy conditions on Tuesday, with the Pollutant Standards Index (PSI) staying at the high end of the moderate range. PSI was 79 to 91. The three-hour PSI, which is not linked to any health advisory, had been rising since morning.

Market forecast:

STI is expected to take side ways trend. It has support level at 2850, if it breaks this level it may down till 2830. It is trading within the range of 2830 - 2905. It has its resistance at 2905.

STI COUNTER SPECIFIC NEWS

• A subsidiary of Magnus Energy is forking out A$1 million (S$1 million) in cash to subscribe for 8 million shares in a new Australian oil and gas company.
• Neptune Orient Lines (NOL) on Tuesday said that besides reports that surfaced in July saying Singapore state investment firm Temasek Holdings has put it up for sale, it was not aware of anything else which might explain the trading in its shares.
• DBS has ambitions to introduce cashless options through a first-of-its-kind mobile application to hawker centers and quick-serve restaurants in Singapore, a senior bank executive said on Tuesday.
  
  

GLOBAL FACTORS AND WORLD INDICES:

• Shares in Hong Kong rose Tuesday following gains in New York after top Federal Reserve officials moved to reassure dealers about the US economy after being spooked by last week's decision to hold interest rates. The Hang Seng Index climbed 0.18 per cent, or 39.65 points, to close at 21,796.58.
• China stocks rebounded for the second day on Tuesday, in a further sign of improving investor sentiment that may help the market gradually stabilise after the rout since mid-June.
• Asian shares rose on Tuesday and the dollar held steady as US markets bounced back and the European Central Bank said it was prepared to ease monetary policy further.
• Taiwan stocks rose on Tuesday mostly following overseas markets and some bargain hunting after the previous day's losses, but further gains were capped due to uncertainties ahead of the central bank's policy meeting.
• The introduction of a new accounting standard for financial instruments will be challenging for the banking industry, especially when it comes to modeling for expected losses, the European Central Bank's supervisory chief said on Tuesday.
• The dollar advanced against the euro and other leading currencies Monday on comments from US central bankers who continue to eye a 2015 interest rate increase.
• US home resales fell more than expected in August, a cautionary sign for the US housing market which has recently looked on stronger footing. The National Association of Realtors said on Monday existing home sales dropped 4.8 per cent to an annual rate of 5.31 million units.
• Gold steadied below a near three-week high on Tuesday, retaining overnight losses as Asian equities and the dollar edged higher and as investors worried over the possibility of a US interest rate hike later this year.
• Oil prices rebounded on Monday , looked like a technical correction from heavy losses last week as the basic global oversupply picture remained intact.

Singapore Updates Today

• Singapore share prices opened lower with the Straits Times Index (STI) down 21.85 points or 0.76 per cent to 2,857.74.
• Olam Intl is eyeing at US$2.72bn opportunity for acquisitions from commodity crisis.
• Sembcorp has agreeed to divest SembSita Pacific for A$485m.

• Ascendas Reit is snapping up a portfolio of 26 logistics properties at one go for A$1.01 billion (S$1.02 billion).
• Oil prices edged up as US drilling declines.
• Police arrested 27-year-old man over Singapore Grand Prix track invasion.

The Basics Of Stock Investment - SGX Market

When it comes to investing in SGX market, off course no one expects to lose the capital. Moreover, everyone wants to earn capital and succeed.

Here are various strategies you should follow to grow chances of winning in the market.

It’s Necessary to Be Updated While Investing in Stock Market:

The stock market involves number of investors with conflicting views because if one investor sells out a particular stock, next investor buys it. As both the investors have different views while buying a stock, it is conflicting system.

Overall, if one investor makes good profit; other might suffer from loss. Therefore, it’s necessary to be updated about stock trading with correct Stock Picks to get succeed.

Avoid Predicting the Market:

Well, there are so many reasons why stock prices get up or down. Some of the reasons include rumors by media, perspective of various experienced investors, risk factors, supply & demand and because of the presence of various suitable alternatives.

Because of above mentioned factors & related information creates the reason for stock price to fluctuate, as a result of which buyers & sellers are unable to predict the future market conditions.

If sellers increase, the price of stocks will definitely fall. In the same way, if buyers will be more than sellers, stock prices will get rise. In addition to this, it’s necessary to get Stock Trading System from trustworthy firm to analyze the market properly before investing.

The Final Word:

When making stock investment in SGX market, as there are investors on the other side who are ready to buy the stocks you’re selling (vice versa), you should be able to take good decision before investing.

USD/SGD at a Glance

U.S. Dollar (Currency code: USD)

• Central bank: The Federal Reserve System (also known as the Federal Reserve, or the Fed)
• The USD (also called the greenback or buck) is the de facto global currency. Most commodities (including gold and oil) are priced in USD.
• The U.S.A. has by far the largest economy in the world.
• America faces challenges from developing economies, and has consistently large trade deficits with other nations.

Singapore Dollar (Currency code: SGD)

• Central bank: The Monetary Authority of Singapore
• The Singapore dollar (also called Sing) is used by one of the world’s most prosperous countries.
• Singapore has a highly developed free-market economy characterized by stable prices and an open environment free of corruption.
• The economy is driven by exports, particularly in consumer electronics, IT products, pharmaceuticals and other chemicals.
• A growing financial services sector has positioned Singapore as the Southeast Asia’s financial hub.

KLCI Technical Reports : 15th Sept 2015

Market Review for KLCI:

The FBM KLCI index gained more than 25 points in late afternoon trade on Monday.Local sentiment improved after Prime Minister has announced a government equity investment firmwould be given 20 billion ringgit ($4.6 billion) to shore up the country's stock market, and announced other measures to support its slowing economy.

The Finance Index increased 1.59% to 14239.33 points, the Properties Index up 0.32% to 1140.27 points and the Plantation Index rose 2.50% to 7062.07 points. The market traded within a range of 44.79 points. high of 1645.49 and a low of 1600.70 during the session.

The KLCI closed higher at 1639.63 points amid gains in US Market on last Friday before a Federal Reserve interest rate decision this week. Local sentiment improved after Prime Minister has announced several new measures to strengthen the economy.There were 303 gainers and 381 losers

Market forecast for KLCI:

The FBM KLCI index is expected to trade with bullish sentiments in coming session supported by the positive measures taken by the local government to boost Malaysia’s economy.Technically the KLCI index had crossed the level of 1614 and it may reach the level of 1660 in near term. 

WORLD INDICES
DOW JONES	16433.09
SHANGHAI	3263.428
NIKKEI	17965.70

KLCI COUNTER SPECIFIC NEWS :

• Malaysian stocks headed for a four-week high, led by a rally in state-controlled companies, after Prime Minister Najib Razak said the government will tap a fund to support the nation's equities.
• Berjaya Food Bhd’s net profit rose 1.73% to RM6.11 million for the first quarter ended July 31, 2015 against RM6.0 million in the previous corresponding period.
• Genting Malaysia Bhd, which is on track to meeting the demands that the Genting Integrated Tourism Plan (GITP) will make on it next year, sees value in reclaiming the Guinness Book of Records title for operating the world’s largest hotel.
• Bank Negara Malaysia (BNM) has maintained the overnight policy rate at 3.25% as it remains accommodative and supportive of economic activity.
• Petronas Dagangan, Petronas Gas and MISC led the FBM KLCI higher in early Monday trade amid a mixed market while investors awaited measures from the government to strengthen the economy.

Singapore News Highlights : 14th Sept 15

• Singapore shares opened marginally lower with the benchmark Straits Times Index falling 2.18 points or 0.09 per cent to 2,885.85.
• China interbank market has opened lending facilities to qualified members.
• Oil Search has rejected Woodside's US$8b takeover bid as too low.