SGX Stocks and Warrants
STI - To See New Bounce on Bernanke Comments?
Warrants Highlight
STI - To See New Bounce on Bernanke Comments?
| Code | Name | Type | Expiry | Exercise Price |
| P8BW | STI 3000MBeCW120629 | Call | 29-Jun-12 | 3000 |
| P8CW | STI 2900MBePW120629 | Put | 29-Jun-12 | 2900 |
| PA7W | STI 3100MBeCW130131 | Long Dated Call | 31-Jan-13 | 3100 |
| PA8W | STI 2800MBePW130131 | Long Dated Put | 31-Jan-13 | 2800 |
FOMC outcome spurs overnight markets
The two-day FOMC meeting concluding last night with the Fed set to leave its policy unchanged as they expect “economic growth to remain moderate over coming quarters and then to pick up gradually”. While no additional steps will be taken to boost the economy, Fed Chairman Ben Bernanke promised that they “remain prepared to do more as needed to make sure that this recovery continues”.
Setting a confident tone for the year ahead, the Fed upgraded their forecasts for U.S growth, employment and inflation rate this. All three saw improved projections, although estimates were lowered for next year and 2014 to reflect the impact from possible fiscal tightening.
U.S equity markets finished up strongly, with the Dow recording gains of 0.7% and the S&P 1.4%.
Taking a view on Singapore market via STI warrants
The positive news may very well lend a boost to the Singapore shares. The benchmark STI has been trading sideways within a tight 15 point trading range over the last two days. Yesterday, 47% of the index constituents on the STI closed above their 20 day moving average (versus 37% on Tuesday), and 50 day moving average (vs 43%).
Investors who wish to take a view on the STI without the need to stock pick may consider trading STI warrants. Investors anticipating a run-up on the Singapore stock market can potentially take a leveraged exposure with STI call warrants, while bearish investors can consider STI put warrants.
Singapore Market Wrap
Range Bound Day without Much Excitement
The STI traded sideways throughout the day and ended 0.2% higher day-on-day (dod) at 2,979.78. The Nikkei was one of the best performing Asian indices, rising almost 1%, while the HSI fell 0.2%.
June Call STI 3000MBeCW120629 (P8BW) exercise level 3,000.*
June Put STI 2900MBePW120629 (P8CW) exercise level 2,900.*
Longer dated Call STI 3100MBeCW130131@ (PA7W) exercise level 3,100.*
Longer dated Put STI 2800MBePW130131@ (PA8W) exercise level 2,800.*
SembMarine, Keppel rose after ex-div
Both Sembcorp Marine and Keppel Corp went ex-dividend yesterday. SembMarine rose 2.8% dod to $5.14, while Keppel rose 1.2% to $11.13 (compared to theoretical ex-div prices). Crude prices have been rising for the past 4 trading sessions. The Nymex crude futures were trading around $104 per barrel at 5pm yesterday.
Call SembMar MBeCW120905 (P1FW) exercise price $5.20.*
Long dated call SembMar MBeCW130603 (M8NW) exercise price $5.747.*
Call KepCorp MBeCW130103 (MV8W) exercise price $10.909.*
Call KepCorp MBeCW120801 (P1HW) exercise price $11.50.*
Long dated call KepCorp MBeCW130603 (M8PW) exercise price $11.818.*
Noble slipped to 3-month lows
Noble ended the day in its negative territory again yesterday, falling 2.0% to $1.22. Bloomberg reported that Noble's chairman Richard Elman said that he expects commodity prices to rise in the long term because of increasing transportation costs.
Call NobleGrpMBeCW121002 (P8JW) exercise price $1.40.*
Overnight Market Wrap
Bernanke Sees Accelerating Economy
Positive earnings from Apple and Boeing helped to lift market sentiments. US indices rose yesterday, the S&P500 rose 1.4% to 1,390.69, while the Nasdaq surged 2.3% to 3,029.63.
US Federal Reserve Chairman Ben Bernanke said that the Fed remained cautious on the recovery and he is ready to stimulate growth if necessary. The Fed expected the economy to grow around 2.4% to 2.9% this year, compared to a previous forecast of 2.2% to 2.7%. On a separate report, durable goods orders fell 4.2%, the biggest decline since Jan 2009.
Overnight Markets
| Indices | Last | Change |
|---|---|---|
| STI | 2979.78 |
0.2%  |
| HSI | 20646.29 |
-0.1%  |
| DJIA | 13090.72 |
0.7% |
| S&P 500 | 1390.69 |
1.4% |
| Nasdaq | 3029.63 |
2.3% |
Corporate News
Corporate Announcements
Yangzijiang posted a 1Q12 net profit of RMB 1.02 billion, a 7% from the previous year.
Results Announcement
Fri 27 Apr: DBS 1Q12
Mon 30 Apr: CapitaLand 1Q12, IndoFood 1Q12
Tue 8 May: Cosco 1Q12
Wed 9 May: UOB 1Q12, SembMarine 1Q12
Thu 10 May: Wilmar 1Q12, SingTel 4Q12
Fri 11 May: OCBC 1Q12
Ex-Dividend Date
Thu 26 Apr: STX OSV ($0.10)
Fri 27 Apr: OCBC ($0.15)
Mon 30 Apr: Cosco ($0.03), Golden Agri ($0.0184), SGX ($0.04)
Fri 4 May: Wilmar ($0.031), IndoFood Agri ($0.003)
Mon 7 May: UOB ($0.40), CapitaLand ($0.08)
Wed 9 May: DBS ($0.28), Genting ($0.01)
Related Stocks
| Chart | Stock Name | Last | Change | Volume |
|---|
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This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
