| 07/11/2002 Thurs 0:00 am Thurs 05:30 am Dow is down 282 and Nasdaq is down 35. Johnson and Johnson, together with General Motors and Merck are down. Chips and biotech sectors came under selling pressure. Here, the play is likely to on IPO and having seen the strong performance of Aspnetcentre, the next issue Viz Branz (offered at 0.22) may see some action. The food sector has been active for most of 2002 and it would not be too surprising to see a bullish session for Viz Branz. Issue stats: 24.275 mln shares at $0.22. It is a leading Chinese company manufacturing cereal mix and instant coffee. NTA is 36.7 cents, historical PE 8.8 times, Market cap $30.6 mln. Comparable listed companies are Super Coffee, Tasty Food and Food Empire. Wed 6:30 am Both Dow and Nasdaq are down after Bush's speech as the market's weariness is not something a president can alter. With the reporting season coming soon, many US traders would stay cautious and look at every bullish reports with some reservations. After Merck, Enron, Worldcom and etc, who would not be frighten? Here, some pressure may be felt in semi-con stocks due to comments from a major broker and a bank. However, TMSC reported good sales last session and it appears that Asian chip stocks are likely to outperform their counterparts in the US. The play today could be on IPO -Aspnetcentre, issued at 0.20 and prospective PE of around 8 times which is better than market PE of around 15 times. With Peter Lim's as a part owner, some may say there is pedigree in it. Range trading for the blue chips can be expected as we await the next economic report due this morning. On the broader front of world finance, the Yen and Euro made sharp gains, more out of a need of funds to get out of US dollar denominated assets than a preference to hold other currencies. Having been stigmatised, the US Dollar may find the road ahead rocky and harsh and any recovery would be short-lived. The Sing dollar may follow the Yen's pattern, albeit at a slower pace. Previous commentaries |
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