KLCI: +0.35% to 1797.7
JCI: +0.08% to 4724.4                                        SET: -0.36% to 1481.8
HSI: +0.08% to 21362                                        HSCEI: -0.46% to 9448.5
Nikkei: -1.48% to 14589.9                                 ASX200: -0.43% to 4972.1
Nifty: -0.15% to 6029                                          S&P500: +0.16% to 1692.1

MARKET OUTLOOK:

For our longer term outlook on markets, please see our latest Global Macro Asset Strategy report below.

(PhillipCFDs and ETFs for trading the macro outlook can be found in the Global Macro report. PhillipUT Wrap Account offers tactical asset allocation of unit trusts without front loading sales charge.)

MACRO DATA:

In Japan, all industry index rose by 1.1% m-m in May, faster than the 0.1% m-m gain in Apr. Over the year, all industry index rose by 1.2% y-y, compared to the 0.4% y-y reading in Apr. The better reading indicates adds to evidence the nation's economy is improving.
 
Malaysia consumer prices rose 1.8% on year in June mainly because of an increase in food, nonalcoholic beverages and other nonfood items surpassing economists median on-year increase of 1.9%. The CPI increased 0.1% on month.

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Regional Market Focus

Singapore

• The Straits Times Index (SI) ended -4.94 points lower or -0.15% lower to 3213.26, taking the year-to-date performance to +1.46%
• The STI continues negotiate resistance at 3260 and a successful breakout and holding above this line implies further upside to a target zone of 3350 to 3400.
• We expect support from the 3,050 level, while downward bias may persist should the STI not clear above the 3,260 resistance level.
• Though we outline the bullish and bearish cases, we are biased to the upside due to performance and correlations to other indices and commodities.
• Top picks for the year are Pan United (Buy, TP: S$1.21), SIAEC (Buy, TP: S$6.10) & Boustead Singapore (Buy, TP: S$1.80).

Thailand

• The market is closed for on Mon, Jul 22

Indonesia

• Indonesian stocks ended a flat trading day with modest gain on Friday (19/07), in the midst of mixed moves in Asia, despite climbs on US markets on Thursday (18/07) that were spurred by positive second-quarter corporate earnings. The Jakarta Composite Index (JCI) added 3.976 points, or 0.08%, at 4,724.411. The gain on Friday included six of the 9 main sectors. Infrastructure sector fared best with 1.17%-gain, followed by trade, services and investment sector with 0.50%-rise, and consumer goods sector with 0.49%-advance. For the week, the JCI rose 1.97%. But blue-chip stocks treaded water on Friday, with the LQ45 index that measures them finished with a slight loss of 0.221 points, or 0.03%, at 791.914. Weighing on the Jakarta Composite Index, the Rupiah remained weak on Friday, in line with inflation expectation in July after the government raised subsidized fuel prices last month, and ahead of the Eid al-Fitr holiday that usually saw prices increase a few weeks beforehand. The nation’s currency traded at 10,060 against the US dollar on Friday, down 0.1% from a day earlier. Yield for Indonesian government 10-year bond stood at 8.021%, down 18.3 basis points from the previous day. The 10-year yield has risen 11.9 basis points from a week ago. Gainers slightly outpaced decliners 126 to 123 Friday on the Indonesia Stock Exchange. Volume on the regular board fell to 3.08 billion shares worth IDR 4.03 trillion. Foreign investors posted net sale of IDR 54.48 billion worth of shares.
• The Jakarta Composite Index (JCI) may move in choppy sessions today, as mixed leads from the US markets on Friday and Asia this morning provide little clue as to where market sentiments would head to. Investors will also look for cues from the next earnings reports in the US as well as from domestic corporations as market moving factors. We expect the JCI to trade sideways in volatile sessions, with price range of between 4,689 and 4,758.

Sri Lanka

• The Colombo bourse ended the trading day on an upbeat sentiment adding further to the gains recorded on the previous trading day as well, whilst gaining over 1% on most part of the trading day. The market witnessed a steady upward trend from early hours of trading mainly resulted by active participation of the investors and also the prevailed buying interest throughout the day, hence reaching an intraday peak of 6,049.40 gaining a notable 63.95 points from a day earlier, however settled a few points lower at 6,041.06 (0.93%). The S&P SL20 closed 9 points above the 3,400 mark for the first time after 03rd July 2013, gaining a notable 30.43 points or 0.90%. With regard to share price movement, price gainers slammed the price losers by 142:52. The daily turnover totaled up to record LKR 719.11Mn, noting a gain of 8.11% against the previous trading day; almost 46% of this turnover flowed in by way of 7 off-board transactions. Diversified Holdings (DIV) sector topped the list under the sectorial summary providing LKR 355.52Mn. Bank Finance & Insurance (BFI) sector also performed well providing LKR 278.10Mn. Shares totaling up to 13.60Mn changed hands, resulting in a dip of 15.45% compared to the previous trading day. Foreign investors ended the 7 day bullish run, to record a net foreign outflow of LKR 183.99Mn for the first time during the week; this was resulted by foreign selling of LKR 224.42Mn and of buying LKR 40.44Mn. With regard to the local FOREX market, the USD closed at LKR 133.15/- selling and LKR 129.95/- buying.

Australia

• The Australian share market on Friday ended the week with a fall, as negative sentiment across Asia prompted a selloff in local resources stocks. The market rose above 5,000 points in early trade, boosted by gains on Wall Street that took the US stocks to record highs but selling took hold from late morning as other markets in the region lost ground. The benchmark S&P/ASX200 index was down 21.3 points, or 0.43 per cent to 4,972.1 points.
• Today (22/07/13), the Australian market looks set to open higher despite a mixed close on Wall Street and falls locally at the end of last week. The SFE 200 Futures 29 points or 0.58 per cent to 4,971.
• In equities news, Australian Foundation Investment Company is scheduled to post full year results while Macquarie Atlas Roads is expected to release its June quarter traffic report.
• No major economic news is expected on Monday.

Hong Kong

• HSI gained 17 points or 0.08% to 21,362. CEI lost 43 points or 0.46% to 9,448. Trading volume was HKD48 billion. HSI and CEI were up 85 points and 15 points respectively for the whole week, but trading volume below HKD50 billion for all 5 trading days.
• There was rumor that Apple will delay launch of new iphone, smartphone related sector dropped. AAC Tech (2018.HK), Sunny Optical (2382.HK) and Truly Int’l (732.HK) declined 5.7%, 5.5% and 5.7% respectively.
• Gome (493.HK) announced profit alert that the Group’s profit for first half of 2013 is expected to turn from a loss to profit. The share price climbed 11.3% to HKD0.8.
• Technically, expect 50-MA would drop below 250-MA soon, giving a negative signal. We expect the support and resistance will be at 21,158 and 21,674 respectively.

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Morning Note

Company Highlights

Lasseters International Holdings wishes to announce that its wholly owned subsidiaries have entered into a conditional sale and purchase agreement with Hunter Valley (CL) Management Pty Ltd on 19 July 2013 for the disposal of the property, assets and business of CLG Group, comprising, inter alia, freehold interest in lands, villa leases, golf course business and development lands for the cash sum of AUD 10 million. These properties and assets are located at Cnr McDonalds and Thompsons Rd, Pokolbin Hunter Valley NSW 2320 (Closing Price S$0, +0%)

Debao Property Development is pleased to announce that its 55% owned subsidiary Sihui Debao Jiangnan Mingu Property Development Co., Ltd. has on 17 July 2013 successfully tendered for a piece of land (23,381.15 square metres) at Dongcheng Street, Sihui City, in Guangdong Province, People’s Republic of China, for a cost of RMB 200 million. (Closing Price S$0.071, +0%)

Mermaid Maritime Public Company has entered into a three year, USD 23 million charter-in contract with Miclyn Express Offshore for a new build DP2 vessel, which is expected to be delivered in December 2013. Furthermore, the company has been awarded contracts worth USD 5 million, and is working on another USD 4.5 million contract that is nearing completion. (Closing Price S$0.320, +0%)