| 11/12/2002 Wednesday 06:30 pm Wed 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. Tuesday 10:45 pm NASDAQ hit target of 1367 which is just 4 points shy off the major support of 1363 and a bounce from here may signal that the year-end rally may take place afterall. Dow is currently 40 points and signs of a rebound are showing on charts. The Fed is meeting today and nothing unusual is expected from this meeting. In a sense this non-action would be market positive as the street would interprete that the Fed is comfortable with recent improvements in the economy and may sit it out for at least a month to see the effects of the last half point rate cut. Over here, the banks are showing signs of life and technically they are oversold. Tomorrow is a new listing-Econ Healthcare which comes in at $0.28. Historical PE is at 19 times and is relative high when compared to recent listed IPOs. Total issue size is 28 million. SemiTech is more interesting as it comes in at PE of 7.75 times which placed it attractively below competitors MMI and Norelco which have similar business in the HDD market. Priced at $0.20, there are signs that it could perform better than expected. Sunday With the Iraqi arms report in the hands of UN officials, the next stage is expected to be filled with tension as interpretations of the dossier may swing depending on whichever side one is on. This uncertainty could leave investors nervous and with US building up their war armaments around the gulf, the situation is not exactly helpful for the stock market. And that is an understatement. However, the technical picture stays bullish and this slide may be choppy with NASDAQ expected to see some support near 1391 and 1363. The Dow's supports are at 8502 and 8337. Wednesday 8:30 pm Today's plunge suggest weakness ahead for the market and downside risk lies at 1326, recent former low. Tech stocks were battered and part of the reason may be the sharp gains of past week for Chartered, Datacraft, Venture and Stats. With the long weekend looming ahead, today's selling may be a 'play-safe' strategy by short term investors. This is not helped by selling from some funds which could be trading the market on the sell side. Previous commentaries |
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