Chart[29] - Best World

The counter has rebounded twice from support, 1.275. Volume looks relatively significant. Strong resistance is ~ 1.65. The counter is going to release 3rd quarter result by next week Friday.

Oct[10] - Market Updates

Singapore:
Over past two weeks, STI made a U turn from 2860 then head towards support 2798. Rising non-performing-loan from OCBC and UOB dampened market sentiment. Next heavy-weight counter, DBS will open book to public on coming Monday. It would be interesting to see whether support line, 2798 can withhold. Coming week will be full of exciting news globally, such as technical meeting among OPEC ministers, central banker meeting on Japan, UK and most importantly, US Fed. Market is counting down to US presidential election as well.

Market Calendar on coming week:
(SG: Singapore; CH: China; UK: United Kingdom; US: USA; JP: Japan)

Oct[9] - Financial Highlights

The following counters released respective latest financial results last week. A summary is provided.
Sheng Siong, Japfa, Sembco Industry, Sembco Marine, OCBC, UOB, Tianjin Zhongxin, HPH Trust, Mapletree Industrial Trust (MIT), Cambridge Industrial Trust (CIT).

Chart[28] - AP Oil

The counter saw accumulation activities last few trading days. On 18th Oct, company announced joint venture business plan. Next day, company director increased shareholding on the company. Last trading saw price surging 10% with significant volume.

Looking backwards, similar activities ever happened last year July. Price ceiling was 0.32. It would be interesting to see whether history repeat.

Oct[8] - Market Updates

Singapore:
Last week saw generally weakening earning reports from listed companies. Focus shall be shifted to reports from few heavy weighted blue chips next week. Strong support ~ 2798 for STI. Trend looks weak but firm.

Market Calendar on coming week:
(SG: Singapore; CH: China; UK: United Kingdom; US: USA)

Oct[7] - Financial Highlights

The following counters released respective latest financial results last week. A summary is provided.
M1, SGX, Keppel Co, Triyards, Keppel DC Trust, Capitaland Mall Trust (CMT), Cache Logistics Trust

Chart[27] - Courts Asia

Chart on top shows the counter performance in past two years. It fell from 0.6 to 0.32 on 2015. After 10 months of consolidation between 0.32 to 0.4, it broke up to 0.43. Looking at bottom chart, the company actually aggressively bought back shares since February 2016. Even at current price which is 30% up from last February, buying back activities is still undergoing. Latest financial result saw its net profit jumping 50% year on year and book value hit 0.57. It well explained the company buying back till 0.42 which is 25% discount to book value. It might not be surprise shall the counter hitting 0.6 (2014 peak) again.

Oct[6] - Market Updates

US:
Dow Jones is lingering above 18034 which was triple top broken last July. The support withheld meanwhile. Market is accessing companies earning report in 3rd quarter. Potential worries is rate hike on year end. Current bullish oil price is cushioning recent downfall.

Although Yellen has been playing down on specific timeline for next rate hike. US 10 years treasuries notes has been climbing. Signs are pointing that market positioning for next rate hike announcement.

Market Calendar on coming week:
(SG: Singapore; CH: China; UK: United Kingdom; US: USA)

Oct[5] - Yield Screening

Following panic sell down in Dow Jones, STI experienced a quick falling last week. An early sign of rebound was seen on last trading day. 4 months support ~ 2797 still withhold. Interestingly most blue chips were lingering around major support prices. The following STI constituents were shortlisted because of their consistent and reliable dividend payout. Individual "price vs dividend yield chart" are shown below.

DBS: Due to fines over 1MDB and high exposure of borrowing to oil & gas companies, market is showing lack of confident to DBS meanwhile. The three month average price represents 8% discount to its book value (16.4) year to date. It is also interesting to notice that the group used to buy back shares from open market whenever price moving below 16. By last trading day, support price ~15 (dividend yield 4%) still intact. Shall it be broken, next support range will be 14.6 - 14.7

OCBC: It is giving the highest dividend yield among its peers meanwhile. Current price 8.4 represent dividend yield at 4.3%. 8 months support price ~ 8.2 is well above its book value (8.19).

UOB: Interestingly, it is hitting to its book value (18.2). Shall this be broken, next stronger support shall be 17.4 which represents 4% dividend yield.

SGX: It just broke support price ~ 7.3 which represents 3.5% dividend yield. Next support will be 7 which represents 4% dividend yield. The counter used to track market sentiment but in a cylindrical price movement. Three year average is ~7.4. Current share price is at lower zone.

ComfortDelgro: It is one of the few which offer high dividend growth rate ~ 8%. Current price is lingering ~2.7 which represents 3.4% dividend yield. Shall it be broken, next strong support is 2.6 which represent 3.6% dividend yield. Its subsidiary, SBS will be paid $5.3b for assets leasing to LTA up to 10 years.

Both SGX and ComnfortDelgro are in net cash position without any debt.

Chart[26] - Yuuzo

Since early August, buying interest has been gathering in the counter. Last trading day saw its price breaking resistance 0.168 with significant volume. Next trading zone could be 0.168 to 0.183. 

Oct[4] - Market Updates

Crude Oil:
Following announcement about production cut from OPEC and Russia, oil price has been riding higher and higher. There will be informal meeting among OPEC members next week. Hurricane Mathew is hitting east coast of US meanwhile. These are potential bullish factors behind continuation of bull run. From the chart, crude oil is near to its resistance, 51.6. A retreat could be on the way as well.

Singapore:
STI index looks so boring, while hot money was flowing to mid-small cap counters. However, its trend might not be as bearish as one thought. Ever since it rebounded from five year bottom (2550) in early of 2016, it moved into higher low formation as shown in its weekly chart. Strong resistance at 2960. While bullish oil price has hit resistance, market focus could fall on third quarter earning results among listed companies for coming weeks.

Market Calendar on coming week:
(SG: Singapore; CH: China; UK: United Kingdom; US: USA)

Oct[3] - G Invacom (Potential Turnaround)

COUNTER: Global Invacom Group Limited

OVERVIEW:
Listed on SGX (2012) and AIM market of London Stock Exchange (2014), the group is a designer and manufacturer of fully integrated satellite communications ground equipment ("SGE"). It is one of seven companies worldwide involved in R&D, design and supply of Sat Comms products to large-scale satellite broadcasters. Having 30 years track record in pioneering new products, it has now 58 patent applications and 63 granted patents.

HIGHLIGHTS:
[1] Due to technology changes in satellite sector and one-off expenses from acquisition (Skyware Global, US manufacturer), its FY2015 saw net loss of USD1.1m. In latest quarter result, 2Q16 saw revenue contribution ~USD11.3m from the new acquisition. It significantly improved the group's revenue with net gain in profit.

[2] Its R&D activity is mainly in UK, manufacturing in Asia, and clients are from US. Sales are predominantly transacted in USD.

[3] Its borrowing USD5.6m shall be settled by cash this year. No more borrowing to fulfill thereafter.

INVESTMENT THEMES:
[1] Current valuation: Book value - USD0.20 || Earning per share (2Q16) - USD0.0008
      Latest shares price ~ 0.158 translates to deep discount into book value.

[2] To address with new technical changes which caused de-stocking among existing clients (impact to loss of FY2015), the group has completed its research and development for new solution. Pending for qualification approval, management indicated confidence to improve sales and access wider customer base.

[3] The group has secured new orders from major telecommunications service providers and suppliers in US and Indonesia. a leading US broadcaster will launch two satellites later this year. All these factors could contribute to exciting FY2016.

PRICE TREND:
Accumulation activities were spotted during last April and June. Price broke up from 0.124 with significant volume on early July. Strong support at 0.144 afterwards. Accumulation activities are still undergoing as highlighted in below chart. Interestingly, recent mid-small cap counters rally were mostly seen with similar price volume movement. It would be hard to exempt the counter from expectation of second breakup.

Oct[2] - Market Updates

Crude Oil:
Following OPEC announced willingness to have production cut from last week meeting. Market is awaiting further details from OPEC meeting on November. As interest rate hike is seeing slim chance till year end, Oil movement could determine market direction on the month. Price surged >7% last week. It is hitting a downward resistance ~ USD48. Shall this be broken, next ceiling would be USD50. US election could be another major factor affecting market sentiment.

  
Market Calendar on coming week:
(SG: Singapore; CH: China; UK: United Kingdom; US: USA)

Oct[1] - SGX (Cash Generator)

COUNTER: Singapore Exchange Limited

OVERVIEW:
The counter operates an integrated securities exchange and derivatives exchange in Singapore and related clearing houses. It provides listing (IPO), trading, clearing, depository, market data, etc. Security products includes stocks, business trust, REIT, ETF, notes, etc. Derivative products comprise of foreign exchange and interest rate products, commodities, forwards contracts, etc.

ANALYSIS:

[1] Although profit margin has been sliding, the counter delivered stable earning result over past five years. Return of Equity maintained at average 36%.

[2] Its share price movement has been closely tracking STI index before 2015. While index fell to five years bottom range, the counter managed to maintain at middle range since 2015. Its diversified product range contributed to such stability.

[3] With acceptance among shareholders of Baltic Exchange, the acquisition is pending for approval from UK authority. Baltic Exchange owns benchmark indexes for global shipping rate and provides trading platform for freight derivatives market. A successful acquisition would enhance SGX's products and services, including futures trading and thus boost earnings going forward.

[4] Impending commencement of Shenzhen-Hong Kong Stock Connect could help raise trading volume in China A50 Index Futures.

[5] Management aims to distribute 80% of earning or 0.2 per shares as annual dividend, whichever is higher. Investor could expect annual dividend at 0.28 per share.

PRICE vs YIELD CHART:
Generally, the counter price moves in channel from 7.3 to 7.7 when there is not much unexpected turbulence. STI has been quiet ever since crude oil rebounded from 16 year bottom last Feb. It showed its resilience in few panic moment, such as Brexit, FOMC, etc. Blue chip counters were seen stagnant, but mid to small counters were experiencing huge surge in buying interest since 2Q16. Considering such market condition, it is expected SGX shall maintain current earning, thus current price (3.8% dividend) presents opportunity to accumulation. A defensive play while waiting market to change bullish.

*** Note: Same counter has been mentioned in Jun[6] 2016 ***