Stock market update :

Down jones industrial index stock chart

call it what you like bear bounce, dead cat bounce or bear rally, to me a rally is a rally

in any case, i still like to use my TA indicators to give me some idea about near term direction, so based on the latest dow jones charts :

1. there was a potential short signal on the few days after 20th april as my W% indicator turned bearish, indicating a potential to go short if DJ index closed below 7840. we can see that the few days after 20th april, DJ index did move below 7840 on intraday basis but continued to close above the 7840 support level, a sign that buyers are stronger than sellers.

2. and interestingly, the potential short signal disappeared on  24th april as my W% indicator turned bullish again indicating a potential to go long this time if DJ index closed above 8127…..this being the case on 29th april with DJ index closing at 8185.

in the mean time, parabolic SAR indicator remained positive throughout the past 2 weeks, favouring more upside in the near term as well.

in short, i would not be looking to go short just yet……….be patient and wait for the next signal to go short if you have missed the recent buy signal.

happy trading

rooney

Singapore stock market update 17March09 :

More Singapore listed companies may make cash calls in the next few months

Over the past few months, many big cap stocks such as DBS,  Capitaland,  CapitaMall Trust, Chartered Semicon and Ascendas REIT have made cash calls in the form of loan refinancing or rights issue.  In all cases, the rights issues were completed successfully since one of the major shareholders is Temasek with deep pocket.  The fund raising exercises have strengthened the balance of these companies such as raising the Tier1 CAR for DBS and improving the gearing ratio of other companies.

As the outlook for the economy remains unclear, the ongoing recession may negatively impact other companies’ balance sheets and cash flows, raising the possibilities of other fund raising activities.

DMG issued a report today and highlighted some of the non Temasek-linked companies that may require fund raising :

   *   UOB  (BUY, TP:S$11.60) has the lowest Tier 1 CAR of 10.9%, after DBS completed its S$4b right issue and now achieved a proforma Tier 1 CAR of 2.2%. There has been market talk that UOB may beef up its capital closer to its peers.

   *   Suntec  (NEUTRAL,  TP:S$0.75)  has  a S$700m CMBS due in Dec 09.

Its current  gearing of 0.34x is higher than the sector average of 0.29x.

We  believe  the probability of a cash call is relatively higher than its peers.

   *   Swiber  (SELL, TP:S$0.23) has a net debt to equity ratio of 1.0x.

We are also concerned with its ability to repay the S$109m bond maturing late FY09/early FY10. We believe a cash call will help strengthen its balance sheet.

   *   China  Fishery (BUY, TP:S$0.86) has lowered its net gearing to 0.87x (from  Sep  08’s  0.93x). To conserve cash, the company is giving out script dividends.  We do not rule out the possibility of a cash call to strengthen its balance sheet.

Other possible companies include Parkway, Indofood and Keppel Land.

Someone just emailed me a list of singapore listed companies which recently issued profit warning or profit guidance, i have not confirmed the accuracy of the list but i believe the source is from SGX announcements by the respective companies. Here is the list :

Westech electronics

Asia water

PCI

Giant wireless

Hosen

Sitra

AA Group

Liheng

Pacific Healthcare

China Dairy

Kinergy

Magnus

Chuan Hup

Yeo Hiap Seng

Engro

GK Goh

Lottvision

Jurongtech

Sino-Environment

Ramba (Richland)

Enviro-hub

Samko

Abterra

Novena

Yongxin

SM Summit

Luzhou

Tai Sin

Huan Hsin

Guangzhou Industrial

ChungHong

Sinobest

Oriental Food

Multistar

TPV

HLN Tech

New Lakeside

China Sun

A Sonic Aerospace

Jiutian

Adventus

KXD

Tat Hong

Uni-Asia

Inno-Pacific

Gates Elec

Tuan Sin

Superbowl

C&G

FDS Networks

Memtech

AEI

Sky China Petroleum

TTL

Japan Land

Asia Silk

Delong

Multichem

Sunshine

Cosco

Cortina

Unionmet

Asia-Pacific Strategic Investments

China Great Land

Nobel Design

Junma Tyre

Tan Chong International