~ 2.2 formed immediate support for current downtrend. Shall buying interest continue, 2.46 would be immediate resistance. Valuation looks attractive with 5% dividend yield. Net cash > $400m.
Monday, December 31, 2018
Chart[98] - SIA Eng
The counter has been selling down 20% since last Nov. As shown on first chart below, buying interest could be back on last Friday. It actually bounced up strongly from 2.24 with significant volume. Looking into second chart, the counter already fell to the level on financial crisis period ~ 2009.
~ 2.2 formed immediate support for current downtrend. Shall buying interest continue, 2.46 would be immediate resistance. Valuation looks attractive with 5% dividend yield. Net cash > $400m.
~ 2.2 formed immediate support for current downtrend. Shall buying interest continue, 2.46 would be immediate resistance. Valuation looks attractive with 5% dividend yield. Net cash > $400m.
Jan[1] - Market Updates
US:
Due to downfall of 20% from recent peak, both S&P500 and NASDAQ have entered bear market officially before Christmas. DOW Jones pulled its brake just around that boundary, but broke down from its long term support on 200 days moving average (blue line) miserably as shown below. Looking backwards, similar scenario happened on 2015 as highlighted in orange.
The 10 years bull has came to a rest. It would be everyone's guess for its next move. As uncertainty is the only norm in market, investors shall exercise careful measures for his investment decision as always. Over-worried on big crash might end up missing opportunity. Let your money work harder is always one way leading towards financial freedom.
Due to downfall of 20% from recent peak, both S&P500 and NASDAQ have entered bear market officially before Christmas. DOW Jones pulled its brake just around that boundary, but broke down from its long term support on 200 days moving average (blue line) miserably as shown below. Looking backwards, similar scenario happened on 2015 as highlighted in orange.
The 10 years bull has came to a rest. It would be everyone's guess for its next move. As uncertainty is the only norm in market, investors shall exercise careful measures for his investment decision as always. Over-worried on big crash might end up missing opportunity. Let your money work harder is always one way leading towards financial freedom.
Tuesday, December 25, 2018
Dec[5] - Market Updates
Singapore:
General definition for bear market refers to 20% plunge from recent peak of any index. Two major indices from US, S&P500 and NASDAQ entered the bear territory one after one since last Friday. STI has been suffering selling headwind since mid of the year, but still shy away from its bear market boundary ~ 2890. 2960 serves as immediate support, which could be tested soon, shall US market continue to sell down.
Most investors have been waiting for bargain hunting window in bear market. STI ETF actually provide one of the most convenient and less risky means. It tracks STI movement which actually derive its price among 30 companies. While waiting for market turn back into bullish phase, shareholders are entitled for dividend as well. Chart below shows how the STI ETF has been moving since oil crisis 2016 till now.
General definition for bear market refers to 20% plunge from recent peak of any index. Two major indices from US, S&P500 and NASDAQ entered the bear territory one after one since last Friday. STI has been suffering selling headwind since mid of the year, but still shy away from its bear market boundary ~ 2890. 2960 serves as immediate support, which could be tested soon, shall US market continue to sell down.
Most investors have been waiting for bargain hunting window in bear market. STI ETF actually provide one of the most convenient and less risky means. It tracks STI movement which actually derive its price among 30 companies. While waiting for market turn back into bullish phase, shareholders are entitled for dividend as well. Chart below shows how the STI ETF has been moving since oil crisis 2016 till now.
Friday, December 14, 2018
Chart[97] - Sunningdale
The counter price rose with significant volume on last two trading days as refer to first chart below. Price closed below resistance ~ 1.52. Looking its two years price range in second chart, current price is in lower range. Shall it break up from 1.52, it could try to fill up trading gap up to 1.71. A trading opportunity could be presenting.
[1] https://www.theedgesingapore.com/sunningdale-says-prefers-focus-fundamentals-response-quarz
[2] https://research.sginvestors.io/2018/12/sunningdale-tech-uob-kay-hian-research-2018-12-12.html
[1] https://www.theedgesingapore.com/sunningdale-says-prefers-focus-fundamentals-response-quarz
[2] https://research.sginvestors.io/2018/12/sunningdale-tech-uob-kay-hian-research-2018-12-12.html
Dec[4] - Market Updates
US:
DOW Jones continued to sell down last week. Support ~ 24300 already given way, 2018 bottom ~ 23500 poised to be tested next week. Chart formation from last Sep repeated what happened from last Jan to Mar. It would be interesting to see whether the boundary line would be broken this time. FOMC next week Tuesday could be decisive factor for market direction on next year.
DOW Jones continued to sell down last week. Support ~ 24300 already given way, 2018 bottom ~ 23500 poised to be tested next week. Chart formation from last Sep repeated what happened from last Jan to Mar. It would be interesting to see whether the boundary line would be broken this time. FOMC next week Tuesday could be decisive factor for market direction on next year.
Friday, December 7, 2018
Dec[3] - Hong Leong Finance
BUSINESS:
[1] With over 50 years of track record, the finance company has established network of 28 branches and 10 SME Centres island-wide.
[2] On last 9 months, it achieved net interest income, $158m, 25% up year on year. It's mainly due to rise in loan yield amid rising interest rate environment. 80% of loan book is related to domestic property market. Its branches have been actively writing HDB loans.
[3] MAS has been seeking to ease finance companies regulations, thereby improving business conditions.
HIGHLIGHTS:
[1] Current share price ~ 2.4 translates to 40% discount from book value. It has been consistent in paying annual dividend, 0.1 in the past. Due to improvement in earning this year, it paid 0.14, which translates to dividend yield is ~ 5%.
[2] The company have embarked on digital transformation journey. It wants to be an active participant in SG's smart nation and cashless society push.
CHART:
The price shot up > 20% when MAS announced financial de-regulations on Feb 2017. It hit highest ~ 2.84. Current price is around two years low. Trading activities is low for the moment.
[1] With over 50 years of track record, the finance company has established network of 28 branches and 10 SME Centres island-wide.
[2] On last 9 months, it achieved net interest income, $158m, 25% up year on year. It's mainly due to rise in loan yield amid rising interest rate environment. 80% of loan book is related to domestic property market. Its branches have been actively writing HDB loans.
[3] MAS has been seeking to ease finance companies regulations, thereby improving business conditions.
HIGHLIGHTS:
[1] Current share price ~ 2.4 translates to 40% discount from book value. It has been consistent in paying annual dividend, 0.1 in the past. Due to improvement in earning this year, it paid 0.14, which translates to dividend yield is ~ 5%.
[2] The company have embarked on digital transformation journey. It wants to be an active participant in SG's smart nation and cashless society push.
CHART:
The price shot up > 20% when MAS announced financial de-regulations on Feb 2017. It hit highest ~ 2.84. Current price is around two years low. Trading activities is low for the moment.
Dec[2] - Market Updates
US:
DOW Jones were rallying before G-20 meeting last weekend. Surprisingly, it peaked while market were cheerful about trade truce between US and China on last Monday. Downfall accelerated afterwards. Arrest of Huawei's CFO and yield curve inversion were catching market attention this week. Such a drama week proved again that uncertainty is the only certainty in market. Two weeks later will be last meeting among US Federal Reserve on 2018. Monetary policy for 2019 should be the major concern.
~ 24300 will be immediate support for DOW. Shall it broken, next stronger support would be ~ 23500. If this is broken also, more downside shall be ahead.
Relevant News:
[1] https://www.bloomberg.com/news/articles/2018-12-06/huawei-cfo-arrest-pursued-by-u-s-despite-risk-to-xi-trade-talks
[2] https://www.bloomberg.com/opinion/articles/2018-12-05/inverted-yield-curve-will-fed-act-to-avoid-recession
[3] https://www.bloomberg.com/news/articles/2018-12-06/powell-says-u-s-labor-market-very-strong-by-many-measures
DOW Jones were rallying before G-20 meeting last weekend. Surprisingly, it peaked while market were cheerful about trade truce between US and China on last Monday. Downfall accelerated afterwards. Arrest of Huawei's CFO and yield curve inversion were catching market attention this week. Such a drama week proved again that uncertainty is the only certainty in market. Two weeks later will be last meeting among US Federal Reserve on 2018. Monetary policy for 2019 should be the major concern.
~ 24300 will be immediate support for DOW. Shall it broken, next stronger support would be ~ 23500. If this is broken also, more downside shall be ahead.
Relevant News:
[1] https://www.bloomberg.com/news/articles/2018-12-06/huawei-cfo-arrest-pursued-by-u-s-despite-risk-to-xi-trade-talks
[2] https://www.bloomberg.com/opinion/articles/2018-12-05/inverted-yield-curve-will-fed-act-to-avoid-recession
[3] https://www.bloomberg.com/news/articles/2018-12-06/powell-says-u-s-labor-market-very-strong-by-many-measures
Saturday, December 1, 2018
Chart[96] - Headwind Ahead
On last trading days, several counters saw price down with significant transaction volume. It could indicate that sellers are gaining strength ahead. Let look into individual charts below:
Keppel Co: Price briefly broke support 6.08 on last trading day. It hit lowest price for year to date. Next stronger support could be ~ 5.76. Further the price falls, it translates to bigger discount from net tangible value 6.22.
UOL: Failing to challenge resistance ~ 6.4, the counter fell 2% with one of the its highest volume for year to date. Immediate support is 6, which translates to 50% discount from net tangible value and 3% dividend yield. Shall this been broken, next stronger support is around 5.5
Wilmar: The counter has been falling in price with rising volume over last few trading days. It could soon challenge 2018 support 2.97 which translates to 1.2x net tangible value. Shall this been broken, next stronger support is ~ 2.65. Market has been speculating about special dividend from the counter shall its IPO plan in China succeeds in next year.
Keppel Co: Price briefly broke support 6.08 on last trading day. It hit lowest price for year to date. Next stronger support could be ~ 5.76. Further the price falls, it translates to bigger discount from net tangible value 6.22.
UOL: Failing to challenge resistance ~ 6.4, the counter fell 2% with one of the its highest volume for year to date. Immediate support is 6, which translates to 50% discount from net tangible value and 3% dividend yield. Shall this been broken, next stronger support is around 5.5
Wilmar: The counter has been falling in price with rising volume over last few trading days. It could soon challenge 2018 support 2.97 which translates to 1.2x net tangible value. Shall this been broken, next stronger support is ~ 2.65. Market has been speculating about special dividend from the counter shall its IPO plan in China succeeds in next year.
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