| 04/23/2003 Wednesday 06:05 am Wed 6:05 am The Dow and Nasdaq rallied sharply higher on better earnings from drug stocks as well as the support of Bush for the reappointment of Alan Greenspan for one more term as Fed chairman. Weapon stocks also made strong gains on news of great earnings and an overall change in sentiments may take place today in the local bourse. The SARS fear, albeit still present, may slowly ease away as there are signs that the recent measures by the govt is slowly but surely takeing effect and some positive signs are there that the flu is being contain. Drug stock such as Eu Yang Sang and TianJin may hog the headlines but expect some profit-taking ahead when resistances are tested. EYS key barrier is at 0.355. SingPost IPO is taking off and at PE of 10 times and yield of 7%, the stock seems fairly priced. Pls note email service has been temporarily suspended. Wednesday 4/16 8:05 pm The strong results of Micrsoft and Intel may spur a surge in the Dow and Nasdaq tonight. The strong close of Chartered, Stats and Venture bodes well for tech stocks for the near term. Expect a firm opening tomorrow should Wall street close positive tonight. Crude oil prices are set to ease with the war in Iraq close to being over. The geo-political good news has spread to Asia with US, China and N. Korea set to meet later next week. Thursday 8:00 am A stronger opening in Wall Street is expected tonight as a delayed reaction to the apparent ease in winning the battle of Baghdad may ensue. Oil stocks are still in favor as the opening up of Iraqi oil could see increase in production for US oil companies. Semi-con are doing fine with recent signs of pick-up in sales in Taiwan. In all, expect a better session today despite last session's weak close. Thursday 3:05 pm Today's strong showing despite the 100 points drop on Wall street is positive for the medium term outlook. Keppel Corp surges ahead to $4.66 on expectations of better earnings and also winning of a contract on rig-building. The next barrier is at former high of $4.74. Major barrier is at $5.10. Keppel Corp's rally may benefit the IPO- Technics which has a joint venture project with Kep Fels for building offshore oil rigs. Technics also has good business contacts and one of its customer is Halliburton (Y2001) which were recently awarded a major contract in Iraq to repair and salvage burning oil wells. The recent concluded war in Iraq could mean more business for the oil and gas exploration sector and growth may continue as long as oil price stays above US$18 per barrel.. Wednesday 9:55 am The sense of calm of last week gave way to selling on worries on the economic fallout from the flu virus, named SARS. DBS and SIA came under selling pressure. Some interest likely to be seen in M1 as it may receive higher weightage from the new MSCI. Technics ipo close today at 12 noon and issue size of 25 mln at $0.22 is well priced with pe of 6.29 (historical). This is comparable to KS Tech and Total Auto. Technic has the advantage of a lower market cap of $26 million and well poised to benefit from the strong demand from the oil and gas exploration sector. This is one growth area which is immune to SARS and is relatively less vulnerable to economic fallout from wars when compared to the other sectors such as tech, commerce, property etc.. Previous commentaries DISCLAIMER This is a free site and all views expressed here are not an inducement to trade or invest. The reader should be aware that investment and share trading have inherent risks and the author shall not be responsible for gains or losses incurred whatsoever. |
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