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Market News that affect STI

 

 

WOW!!! Nikkei gone ballistic...

 

Ya...any pullback might be a money making chance...!!!! kekeke

 

Good news whenever there is consolidation and closures of small enterprises that had failed..

 

U.S. regulators close seven small banks on Friday......

 

Quote in highlight from dealer0168 post below:

'This is a liquidity-driven market,' said Ben Kwong, chief operating officer at brokerage KGI Asia Ltd in Hong Kong. 'If liquidity continues to stay at this level, it still has a chance to go even higher. But still we may see some profit taking after 20,000. The market may want a breather

dealer0168      ( Date: 25-Jul-2009 22:29) Posted: Hang Seng breaks through 20,000 on property rebound HONG Kong's benchmark Hang Seng Index climbed above 20,000 yesterday for the first time since the collapse of Lehman Brothers Holdings Inc, as a rebound in property prices helped push the index up 75 per cent since March. Developers such as Sun Hung Kai Properties Ltd, the world's largest by market value, helped spur the advance. Aluminum Corp of China Ltd and Bank of China Ltd climbed as China became the first of the major economies to recover from the global recession. Citic Pacific Ltd surged after the biggest currency derivative losses by any Chinese company prompted a government bailout. For Lehman, 'people have pretty much put it behind' them, said Tat Auyeung, a fund manager at Apex Capital Management in Hong Kong, which oversees more than US$400 million. 'If we start seeing earnings upgrades, that will push the market even higher. That's fundamentally the most important driver.' Rallying stocks in Hong Kong reflect speculation global efforts to repair credit markets and revive economic growth will boost profits. The Hang Seng slumped 64 per cent from its October 2007 record to its low this year in March. It fell as much as 43 per cent following Lehman's failure on Sept 15. China's pledge to spend four trillion yuan (S$843 billion) to spur growth helped drive the advance. Hong Kong has allocated HK$87.6 billion (S$16.3 billion), or about 5.2 per cent of gross domestic product, to stimulus and relief spending since 2008. The city, battling its worst recession in a decade, probably returned to growth in the second quarter of this year as the declines in exports moderated, Financial Secretary John Tsang said on July 6. The rally drove the average valuation of companies in the Hang Seng to 17.5 times estimated earnings as at yesterday, up from 10.6 at the beginning of this year. The gauge's 14-day relative strength index, which measures how rapidly prices have risen or fallen in that period, closed at 68.5 on Thursday, just below the 70 threshold some traders use as a signal to sell. 'This is a liquidity-driven market,' said Ben Kwong, chief operating officer at brokerage KGI Asia Ltd in Hong Kong. 'If liquidity continues to stay at this level, it still has a chance to go even higher. But still we may see some profit taking after 20,000. The market may want a breather.' After breaking through the 20,000 level, the Hang Seng Index then fell as much as 0.5 per cent. It traded 0.3 per cent higher at 19,844.06 as of 10.56am local time. Sino Land Co, controlled by the family of billionaire Ng Teng Fong, and billionaire Cheng Yu-tung's New World Development Co are the Hang Seng Index's best performers in the rally since March through Thursday, as confidence in the city's real-estate industry returned. The value of residential units sold in June increased 26 per cent from the previous month to the highest value in a year. -- Bloomberg     (Hong Kong)

 

HONG Kong's benchmark Hang Seng Index climbed above 20,000 yesterday for the first time since the collapse of Lehman Brothers Holdings Inc, as a rebound in property prices helped push the index up 75 per cent since March.

Developers such as Sun Hung Kai Properties Ltd, the world's largest by market value, helped spur the advance. Aluminum Corp of China Ltd and Bank of China Ltd climbed as China became the first of the major economies to recover from the global recession.

Citic Pacific Ltd surged after the biggest currency derivative losses by any Chinese company prompted a government bailout.

For Lehman, 'people have pretty much put it behind' them, said Tat Auyeung, a fund manager at Apex Capital Management in Hong Kong, which oversees more than US$400 million. 'If we start seeing earnings upgrades, that will push the market even higher. That's fundamentally the most important driver.'

Rallying stocks in Hong Kong reflect speculation global efforts to repair credit markets and revive economic growth will boost profits. The Hang Seng slumped 64 per cent from its October 2007 record to its low this year in March. It fell as much as 43 per cent following Lehman's failure on Sept 15. China's pledge to spend four trillion yuan (S$843 billion) to spur growth helped drive the advance.

Hong Kong has allocated HK$87.6 billion (S$16.3 billion), or about 5.2 per cent of gross domestic product, to stimulus and relief spending since 2008. The city, battling its worst recession in a decade, probably returned to growth in the second quarter of this year as the declines in exports moderated, Financial Secretary John Tsang said on July 6.

The rally drove the average valuation of companies in the Hang Seng to 17.5 times estimated earnings as at yesterday, up from 10.6 at the beginning of this year. The gauge's 14-day relative strength index, which measures how rapidly prices have risen or fallen in that period, closed at 68.5 on Thursday, just below the 70 threshold some traders use as a signal to sell.

'This is a liquidity-driven market,' said Ben Kwong, chief operating officer at brokerage KGI Asia Ltd in Hong Kong. 'If liquidity continues to stay at this level, it still has a chance to go even higher. But still we may see some profit taking after 20,000. The market may want a breather.'

After breaking through the 20,000 level, the Hang Seng Index then fell as much as 0.5 per cent. It traded 0.3 per cent higher at 19,844.06 as of 10.56am local time. Sino Land Co, controlled by the family of billionaire Ng Teng Fong, and billionaire Cheng Yu-tung's New World Development Co are the Hang Seng Index's best performers in the rally since March through Thursday, as confidence in the city's real-estate industry returned.

The value of residential units sold in June increased 26 per cent from the previous month to the highest value in a year. -- Bloomberg

 

 

(Hong Kong)

 

Tech (electronic sector) stock future still not so rosy.

 

Manufacturing output down worse-than-expected 9.3% in June
By May Wong, Channel NewsAsia | Posted: 24 July 2009 1331 hrs

	<>

SINGAPORE: Singapore's manufacturing output slipped back into the red in June. Production fell by 9.3 per cent compared to a year ago.

It was pulled down by double-digit contractions across most clusters, including precision engineering and electronics.

When compared to the previous month, manufacturing output declined by 9.2 per cent in June on a seasonally-adjusted basis.

The electronics cluster was the biggest culprit in dragging down June's headline manufacturing output in June. Output for the sector alone fell by 20.4 per cent on-year.

Meanwhile, the precision engineering cluster contracted 18.1 per cent, while the transport engineering group fell 12.4 per cent compared with the same period last year.

This was due to fewer activities in the shipyards and fewer repair orders from commercial airlines.

Some economists said the numbers did not come as a surprise.

Song Seng Wun, regional economist, CIMB-GK Research, said: "It's still within the expectation of a decline overall and if we take away the pharmaceutical sector, we're seeing some modest improvement - in terms of the contraction from the other sectors getting smaller.

"That's basically fitting in (with) what we've seen elsewhere and that the rate of contraction is narrowing as we go through the rest of the quarter."

But there was some good news from the biomedical manufacturing cluster, where output expanded by 11.6 per cent due to higher level of pharmaceutical production.

All in though, the data suggests that the road to recovery is not altogether smooth.

Mr Song added: "We've seen some segment of services doing relatively well, particularly towards the tail end of the second quarter and that perhaps may lead to some improvement on the services sector growth.

"We could find that after the expansion in the second quarter, pharma could pull back in the third quarter, so don't be surprised that we may see manufacturing being a bigger drag in the third quarter and we may see a headline GDP contracting by a larger margin in the third quarter. So it's still a patchy road to recovery at this juncture."

But some analysts said the upside is that orders for the third quarter remain steady for now.

The key they pointed out is to keep an eye out for the fourth quarter results. The performance then will be dependent on factors like the level of consumer confidence and how the labour market is doing. - CNA/vm

 

Euro Rises on Improved Confidence, Manufacturing; Stocks Gain





By Justin Carrigan

July 24 (Bloomberg) -- The euro rose against the dollar and the yen, while stocks extended the longest winning streak in more than five years, on evidence that the worst recession since World War II is moderating.

The euro snapped a three-day decline against the dollar, rising as much as 0.6 percent as of 9:23 a.m. in London, and advanced for a second day versus the yen. The MSCI World Index gained 0.3 percent to 1,028.15, climbing for a 10th straight day in its longest sequence of gains since December 2003.

Business confidence in Germany, Europe’s largest economy, rose for a fourth month in July, the Ifo institute in Munich said today. Data from Markit Economics showed Europe’s manufacturing and service industries contracted more slowly in July, beating analysts’ estimates. Federal Reserve Bank of Dallas President Richard Fisher said yesterday he sees “the beginnings of a faint recovery.”

“Incoming data surprises are finally coming in on the upside,” said Michael Rottmann, head of fixed-income research in Munich at UniCredit Markets & Investment Banking. “We’ll see a further break higher in the euro-dollar exchange rate.”

The yen fell against all of its 16 most-traded peers as investors sought higher-yielding currencies. The Australian dollar added 0.7 percent versus the yen and 0.6 percent compared with the dollar.

Brighter Outlook

Government bonds fell, led by German bunds, on waning demand for the safest assets. The yield on the 10-year German bund added 4 basis points to 3.49 percent, while 10-year Treasury yields rose 2 basis points to 3.68 percent.

“For the first time in a long time, the outlook for the global economy brightened,” European Central Bank governing council member Ewald Nowotny said today.

The pound weakened 0.2 percent against the dollar and the euro, reversing earlier gains, after the London-based Office for National Statistics said U.K. gross domestic product shrank 0.8 percent from the first quarter, more than twice as much as economists had forecast.

Europe’s Dow Jones Stoxx 600 Index climbed for a 10th day, adding 0.6 percent in the longest rising streak since 2006. Vodafone Group Plc, the world’s largest mobile phone company, gained 3.6 percent after reporting higher first-quarter sales. TeliaSonera AB jumped 6.6 percent after Sweden’s biggest telephone company said second-quarter profit increased.

Futures Gain

Futures on the Standard & Poor’s 500 Index added 0.2 percent. Amazon.com Inc., Microsoft Corp. and American Express Co. fell in European trading after reporting earnings that disappointed investors. Earlier in the week Caterpillar Inc. and EBay Corp. profits beat analyst estimates. Per-share profits have beaten projections at about 74 percent of companies in the S&P 500 so far, while 49 percent exceeded estimates on sales.

“It is cost cutting that is driving performance rather than real growth, which is fine for corporate bonds but not so good for equities,” said Gary Jenkins, a strategist at Evolution Securities in London. “We really are in ‘is the glass half empty or half full?’ mode.”

The cost of protecting investment-grade corporate bonds from default dropped to the lowest in more than 11 months, with the Markit iTraxx Europe credit swaps index falling 2.5 basis points to 93.5, JPMorgan Chase & Co. prices show.

Copper Gains

Copper for delivery in three months rose 0.3 percent to $5,548 a metric ton on the London Metal Exchange, rebounding from an earlier decline of as much as 1.4 percent. Aluminum, nickel and zinc also advanced. Crude oil added 0.6 percent to $67.57 a barrel on the New York Mercantile Exchange.

China’s central bank said it will guide “appropriate” growth in credit after record new lending in the first half of the year. China is the world’s largest consumer of commodities such as copper, aluminum and iron ore.

The ruble strengthened for the fourth day this week against the dollar as oil, Russia’s main export earner, advanced. The currency gained 0.3 percent to 31.0779 per dollar, extending this week’s rally to 2.1 percent.

Evidence is mounting that the world’s biggest economies are emerging from their deepest recessions since World War II after the U.S. government and the Federal Reserve pledged $12.8 trillion to revive growth following the seizure in credit markets in August 2007.

The Organization for Economic Cooperation and Development said June 24 gross domestic product in the 30 industrialized member countries will grow 0.7 percent next year after shrinking 4.1 percent in 2009.

To contact the reporter on this story: Justin Carrigan in London at jcarrigan@bloomberg.net

Last Updated: July 24, 2009 05:17 EDT

 

HSI still going up n holding strongly:

richtan      ( Date: 24-Jul-2009 12:07) Posted:   Asia Europe America Commodity(** = 30 mins delayed) Index Last Change % High Low Time STI 2515.65 30.75 1.24% 2527.83 2506.03 12:02:29 Hangseng 19887.96 70.26 0.35% 20063.93 19715.15 12:02:33 Nikkei225 9880.69 87.75 0.9% 9943.05 9863.87 13:02:03 SSE 3375.16 46.67 1.4% 3376.46 3339.20 11:30:08 KLCI 1151.31 -0.84 -0.07% 1159.81 1147.85 12:02:00 SET 612.64 0.45 0.07% 618.36 612.39 11:01:58 Hang Seng intraday aredi broke above 20000, at 20063

 

Nikkei still holding up strongly.

richtan      ( Date: 24-Jul-2009 10:35) Posted: Nikkei is getting even more stronger: richtan      ( Date: 24-Jul-2009 09:45) Posted: Nikkei also gone ballistic.

 

 U will be very shocked when one day it transformed into a roaring tiger (cat family)

des_khor      ( Date: 24-Jul-2009 12:22) Posted: They are Pussy cat... richtan      ( Date: 24-Jul-2009 12:21) Posted: des_khor,  be very patient, every dog has its day, every cloud has its silver lining

 

They are Pussy cat...

richtan      ( Date: 24-Jul-2009 12:21) Posted: des_khor,  be very patient, every dog has its day, every cloud has its silver lining. des_khor      ( Date: 24-Jul-2009 12:14) Posted: Haha...SSE up up touch the sky.... our S-Chip like a snail....

 

des_khor,  be very patient, every dog has its day, every cloud has its silver lining.

des_khor      ( Date: 24-Jul-2009 12:14) Posted: Haha...SSE up up touch the sky.... our S-Chip like a snail....

 

ya loh..hope to see a better run in the afternoon...

des_khor      ( Date: 24-Jul-2009 12:14) Posted: Haha...SSE up up touch the sky.... our S-Chip like a snail....

 

Haha...SSE up up touch the sky.... our S-Chip like a snail....

 

  Hang Seng intraday aredi broke above 20000, at 20063

 

Dow Averages Signal Bull Market

By Colin Twiggs
July 23, 2009 10:00 p.m. ET (12:00 p.m. AET)

These extracts from my trading diary are for educational purposes and should not be interpreted as investment or trading advice. Full terms and conditions can be found at Terms of Use.



Five major indexes have all commenced a primary up-trend, signaling the start of a bull market. A word of caution: the recovery is exceedingly fragile. I will only feel comfortable with the bull signal when the Fed and other central banks start raising interest rates. And that is unlikely to occur for some time — without risking a second contraction. Keep your guard up — and your stops tight.

Dow Jones Industrial Average

The Dow broke through 9000, exceeding its January high to confirm a primary advance with a target of 10000*. The spike in Twiggs Money Flow (21-Day) indicates abnormal buying pressure.

 

Nikkei is getting even more stronger:

richtan      ( Date: 24-Jul-2009 09:45) Posted: Nikkei also gone ballistic.

 

Todat volume might hit 2.5B.... bullish as rise with strong volume!