| 18/12/2002 Thursday 07:50 pm Thursday The strong close today is encouraging for the bulls and with most blue chips having been bombed out, the odds for a year-end rally looks better. Hedge funds which may have driven index-linked stocks down could start to cover their shorts as early as tomorrow as next week is a holiday-shortened trading week. Today's activities were centred on IPO Cheong Woh which went below the IPO price of $0.23 on news of undersubscription. The next IPO will be DMX which comes in at $0.21 and prospective PE of 8-10 times. Issue size is 55 million and the public portion is 16.2 time oversubscribed. The company is a direct competitor of Datacraft. Tuesday 17/12 Blue chips were under selling pressure as index linked stocks fell despite better than expected non-oil domestic exports numbers. The play on tech stocks stays healthy despite the weaker close for Chartered. Datacraft closed firm as market looks forward to DMX which will close tomorrow. The next IPO to be listed will be MultiVision which is oversubscribed by 7.8 time for the public portion and twice by the placement portion. Interestingly, funds such as PHEIM Assets, Phillip Capital Mgt and Commerzbank Asset Mgt took up 10,000, 4,000 and 4,500 respectively. UOB Asset mtg, UOB KH(HK) and Avia Asset mgt took up 4,250 shares which means that 32% of the issue were taken up by funds. The company comes in at a historical high PE but based on recent published earnings, the PE for Y2003 is forecasted by analysts to range from 13 to 16 times. Sales for its high tech surveillance products grew at a rapid pace and orders for 2003 is at HK$58 mln which could mean that it may have carve a niche for itself in the arena of high security networking which became almost a necessity after the Sept 11 and Bali bombings. This is the first high tech security surveillance company to be listed here. A similar type of company listed in NASDAQ is InVision which surged 19.33% last night on projection of strong earnings based on orders for its explosive detection system. The issue size of MultiVisionl IPO is 70.1 million shares and is priced at $0.23. Tuesday 17/12 Finally, the bulls woke up and took the Dow upwards by 193 points and NASDAQ by 38 points. Analysts and market watchers attributed the rally to bargain hunting and this could see some spill over effects here. At the end of a bear market cycle, which we had for the better part of this year, a significant bounce could take place as hedge funds may cover their shorts to book their profits for the year. Some of the harder hit counters such as Chartered, Stats, Venture and the banks could see gains today. Wed 11/12 6:30 pm Another weak day as the selling mood is still rampant. The tech sector stays weak with Chartered, Stats and Venture closing weaker. The debut of IPO Econ saw the issue going below offer price of 0.28 to low of 0.24. Meanwhile, the trend in the US market is reversing off recent lows and a firm close today could forebode a better day for Singapore bourse tomorrow. M1 stays supported by underwriter but closed weak at 1.24. NOL stays weak on charts for the short term and wave targets are at 0.81 and 0.765. Banks reversed from opening high with OCBC hitting resistance at 9.75 and expected to see support at 9.45. Previous commentaries |
| Tanker's Elliott Wave Free Site |
|
| Free E-Mails are sent to those on mailing list. For those who are interested to be on mailing list, please provide full name, age and occupation to tanker333@hotmail.com |