Singapore Stock Market Comments

- listed companies getting ready to release financial results

Hey, it's my favourite time of the year…..why so?

The famous trader Jesse Livermore once said that he usually traded big positions only few times a year for big gains.  I couldn't agree with him more when it comes to one of my favourite trading strategies called pre-results breakout play.

Being a trader, I have different trading strategies but specifically, I love to trade 2-4 weeks before results reporting season starts.  I believe this is usually a good time to increase the odds of trading by coming both fundamental and technical analysis.  I will usually select a group of stocks with strong fundamentals eg strong growth and decent PE and then combine with technical indicators to time the entry.  Some of my favourite technical indicators are moving averages, stochastics, MACD and MACD histogram.  Naturally, the entry is confirmed upon price breakouts of the most recent resistance levels.

Some of the singapore listed companies due to release results are :
Company For Period When
MobileOne 2Q to Jun ‘07 Jul 23
Qian Hu 2Q to Jun ‘07 Jul 23
Keppel T&T 2Q to Jun ‘07 Jul 24
Keppel Land 2Q to Jun ‘07 Jul 24
Aztech 2Q to Jun ‘07 Jul 25
CapitaRetail 2Q to Jun ‘07 Jul 25
Osim 2Q to Jun ‘07 Jul 25
SPC 2Q to Jun ‘07 Jul 25
ART 2Q to Jun ‘07 Jul 25
Ascott Group 2Q to Jun ‘07 7.30am, Jul 26
Keppel Corp 2Q to Jun ‘07 Jul 26
MacarthurCook Reit 1Q to Jun ‘07 Jul 2
Macquarie Reit 2Q to Jun ‘07 Jul 26
Mapletree Logistics 2Q to Jun ‘07 Jul 26
SP Chemicals 2Q to Jun ‘07 Jul 26
STATS 2Q to Jun ‘07 Jul 26
UIS 2Q to Jun ‘07 Jul 26
CapitaMall 2Q to Jun ‘07 Jul 27
CSM 2Q to Jun’07 Jul 27
DBS 2Q to Jun ‘07 12.30pm, Jul 27
SMRT 1Q to Jun ‘07 Jul 27
Challenger 1H to Jun ‘07 Jul 30
Unisteel 2Q to Jun ‘07 Jul 30
CDL Hospitality 2Q to Jun ‘07 Jul 31
Cambridge Ind 2Q to Jul 31
CapitaLand 2Q to Jun ‘07 Jul 31
Cosco 2Q to Jun ‘07 Jul 31
Fortune Reit 1H to Jun ‘07 Jul 31
Delong 2Q to Jun ‘07 Aug 2
SembCorp Marine 2Q to Jun ‘07 Aug 2
Starhub 2Q to Jun ‘07 Aug 2
China Merchant 2Q to Jun ‘07 Aug 3
Midsouth 2Q to Jun ‘07 Aug 3
Hi-P 2Q to Jun ‘07 Aug 6
BestWorld 1H to Jun ‘07 Aug 6
Great Eastern Holdings 2Q to Jub ‘07 Aug 6
UOI 2Q to Jun ‘07 Aug 6
Dairy Farm 1H to Jun ‘07 Aug 7
HongKong Land 1H to Jun ‘07 Aug 7
LMA 2Q to Jun ‘07 Aug 7
Mandarin Oriental 1H to Jun’07 Aug 7
Memtech 2Q to Jun ‘07 Aug 7
UOB 2Q to Jun ‘07 Aug 7
OCBC 2Q to Jun ‘07 Aug 8
HTL 2Q to Jun ‘07 Aug 10
IFS Capital 1H to Jun’07 Aug 10
Armstrong 1H to Jun ‘07 Aug 13
C&G Ind 2Q to Jun ‘07 Aug 13
Macquarie Intl 2Q to Jun ‘07 Aug 13
MFS 3Q to Jun ‘07 Aug 13
City Dev 2Q to Jun ‘07 Aug 14
Sino-Environment 1H to Jun ‘07 Aug 14
Sunpower 1H to Jun ‘07 Aug 14
Jardine Matheson 1H to Jun ‘07 Aug 15

Singapore Stock Market Comments

- reports by Chinese websites hurting investors' confidence in Midas and Raffles Education

Over the past one week, Singapore listed companies Midas and Raffles Education have been hit by certain negative reports/rumors in the PRC.  The rumor concerning Midas was that one of the top management of the company has been arrested in the PRC on alleged corruption charges.  The negative report concerning Raffles Education was that bank accounts of companies related to the Group in the PRC have been frozen under investigation for using the service of a company called Blooming Enterprises.  Both companies have since made official announcements through SGX to deny these allegations or reports.

Unfortunately, the damage to both companies and shareholders have been done…….Midas stock price has fallen 24% within 9 trading days from recent high of $2.00 (12th july 2007) to $1.52 (24th july 2007) while Raffles Education stock price also tumbled 16% in 5 trading days from $2.36 (17th july 2007) to $1.99 (24th july 2007).  When both companies made announcements to deny these allegations, the stock prices rebounded briefly only to see selling pressures return quickly.  The market has spoken……investors are still worried that more bad news may hit these two companies.

After what happened to China Aviation few years ago, who could blame investors for acting so swiftly the moment they smell something funny…….cut first talk later!! It will take some time before the smoke is clear for these two companies but since results season is just around the corner, maybe this will provide some positive boost to the battered stock prices…..assuming both companies can continue to deliver positive results.

Citigroup is next after Morgan Stanley to warn clients that markets may be due for a major correction after strong rally in recent months. Despite the warnings, Singapore market continue to power on hitting record high. Certain tech stocks which have been "dead" for some time like Meiban and Fuyu recently started to rebound, hitting multi-month high. Oil and gas stocks, construction stocks continue to hit record high as the exploration industry and potential casino related contracts continue to attract investor interests in related stocks.