Sep[6] - Market Updates

Singapore:
STI strongly jumped up last week. 3250 could see some soft resistance. Next week the most important event will be the Fed monetary policy decision. US 10 years treasury yield has been staying above 3%. China just announced to cancel high level trade talk with US. Considering such situation, coming week could see some volatile movement again. Shall new support 3108 be breached, down trend could continue.

Sep[5] - HL Global Ent (Cash Asset at Discount $)

BUSINESS:
(1) The company operates in the hospitality operation and property development activities in Malaysia and the People's Republic of China. It's Copthorne Hotel Cameron Highlands (picture below) is the only hotel situated at the highest accessible point of the highlands.
(2) Last quarter saw higher revenue, due to recognition of $3m on the sales of land in Punggol. Net profit was 2m vs net loss on 2Q2017.

 

HIGHLIGHTS:
(1) The counter is in net cash 60m, which is more than its market capitalization based on current trading price ~ 0.42. It could simply privatize itself.
(2) It was removed from SGX watchlist last April due to continually improvement in earning. Shall earning momentum maintain, its net cash position could swell further.

CHART:
The highest trading price was 0.55 on 2018 Mar. It translates to price to book 0.65x. Last trading price ~ 0.42 was undoubtedly under further discount from asset value.

http://aspire.sharesinv.com/57453/si-research-three-companies-with-the-lowest-pe/

Sep[4] - Market Updates

US:
US 10 years treasury bond is treated as one of the safe heaven among financial market. On mid 2018, the bond yield ever hit 3% and above. It triggered small panic among market for the period, because high yield indicates that the bond is under selling pressure. Around early June, it fell below 3% and market slowly recovered as well. Interestingly, the bond yield surged and briefly paused below 3% again on last trading day. Looking at past 3 months, this is its 3rd attempt. Shall rising momentum continue, one wonder whether similar panic on mid 2018 could re-surface.

https://www.cnbc.com/2018/09/14/bond-market-beginning-to-believe-fed-key-interest-rates-jump.html

Chart[90] - Big Boys Falling

The following counters lost respective few years support last week. Headwind is strong at the moment.

CityDev has been down falling in tandem with STI pace since mid 2018. Selling pressure accelerated upon announcement of new property cooling measure from local government. 9.22 was broken on last Monday. ~ 8 could be next support to be tested.

DBS lost its ground on mid week. Next support ~ 24. It has been among top selling target of institute's fund for the period. Downtrend could persist.

Keppel Co has been hovering around 6.56 for early last week but selling pressure prevailed in the end. Next support could be ~ 6.26. Worth to take note that current price is around net tangible asset value of the counter.

Singpost saw significant selling volume since early August. Support ~ 1.13 was broken last week. Next support ~1.03 shall be tested soon.

Sep[3] - Market Updates

Singapore:
Last week STI hit new low for 2018. It is near to support level ~ 3108 since 2017 May. Barring unforeseen events, it might be range bouncing between 3108 to 3195 for near term. Shall this support be breached, more downside could be seen. An old saying back to mind... "Be greedy when other panic". Time would tell, market always give surprise.

Sep[2] - Singtel (Semi-bond share)

BUSINESS:
(1) Last quarter saw operating profit maintained. Contributions from associates down ~ 20%, mainly due to weaker performance from Airtel and Telkomsel in India and Indonesia.
(2) Free cash flow up 13% to 1.47b
(3) It's CEO highlighted that revenue is stabilizing on sequential quarter basis for India.

HIGHLIGHTS:
(1) The Group has been aggressive in digital segment. Digital Life business, Amobee has been narrowing loss. It could be next IPO target once turning into profit
(2) Collaborating with Razer, a regional eSports will be launched on October. eSports has been gaining high population in world. It's also one of the competitions in latest Asian Game.
(3) A potential merger between Vodafone Hutchison and TPG could see Singtel facing less competition in Australia, where it generates half of revenues.

CHART:
The counter has been top selling target among institutes fund on mid 2018. Undoubtedly, price broke few years support. Somehow it formed double bottom ~3 last month. Buying interest might have returned for the moment. >5% dividend yield is attractive for investors as well.

Sep[1] - Market Updates

US:
USD index has been moving up strongly from 89 since beginning of the year. Ever since Trump commented about rate hiking from Federal Reserve, the index moved down for last two weeks. Last trading day saw it rebounding from support line. The up move could resume for following week. Trader can take position by USD ETF for potential up swing. ~ 100 shall be next higher target. If USD index move down from support line, Gold price could gain buying interest.

Gold ETF: GLD (listed on NYSE)
USD index ETF: UUP (listed on NYSE)