KLCI: -0.03% to 1784.6
JCI: +0.36% to 4640.8                                        SET: +0.36% to 1429.4
HSI: -1.34% to 21923                                         HSCEI: -0.78% to 9650.4
Nikkei: +1.00% to 14401                                    ASX200: -0.11% to 5105.6
Nifty: -2.52% to 5542.25                                    S&P500: -0.57% to 1697.4

MARKET OUTLOOK:
For the latest outlook on trading the markets, please see our webinar slides at http://www.uniphillip.com/ => Education Programs => Phillip Securities Research Webinars
 
We also feature Ezion (Accumulate) in our webinar, take profit on Garmin, as well as continue to be bullish on Genworth.
 
For our longer term outlook please see the latest Global Macro Asset Strategy report below.

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

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Regional Market Focus

Singapore

• The benchmark STI closed lower at 3,224.89 (-0.52%). The 2.0bn shares traded were worth S$1.1bn in value.
• We expect the STI to consolidate at current levels, with key near term support at 3,200 levels.
• Top picks for the year are Pan United (Buy, TP: S$1.21), SGX (Buy, TP: S$8.30) & Keppel Cord (Accumulate, TP: S$12.25).

Thailand

• Thai stocks took a roller coaster ride on Wed with intraday swings of up to 30 points on political rumors before the SET index finished the session up a mere 5.08 points at 1,429.39 points.
• The market remained clouded by domestic political pressure as controversial amnesty-related bills are tabled for debate in parliament today amid protests against the bills. Overnight losses on Wall Street amid QE exit fears after comments from Fed officials that the Fed could begin trimming the size of the stimulus program as soon as Sep but much depends on economic data.
• Wild intraday swings are likely to continue in the Thai stock market, reflecting the fragility of the market amid light trading volume. Foreign fund flows remained mixed amid alternate bouts of buying and selling while the baht extended its slide to 30.43 to the US dollar this morning (0800 hrs Thailand time)
• The SET index is likely to continue its downside bias in a trading range of 1400-1440 today. Cut loss if the main index closes below 1400.
• Today we peg resistance for the SET index at 1440-1460 and support at 1420-1400.

Indonesia
Exchange is closed.

Sri Lanka

• The Market recovered to some extent from its bear run as the indices reversed the gear, to conclude within the green terrain; this was having lost 42 points during the previous trading day. The benchmark ASPI gathered 7.27 points or 0.12% to conclude at 6,121.45. The S&P SL20 too closed positive gaining 5.57 points or 0.16% to settle the day at 3,477.04. As at the day’s close, the total market capitalization stood at LKR 2.36Tn, charting a year to date gain of 8.68%. The market PER & PBV stood at 16.20 and 2.18 respectively. The day witnessed an aggregate turnover of 531.86Mn, indicating a rise of 84.40% against its previously recorded; nearly 55% of this was accounted by the top three contributors for the day. Under the sectorial review, Diversified Holdings (DIV) dominated the list, providing LKR 188.89Mn. Bank Finance & Insurance (BFI) sector too provided a notable LKR 110.71Mn; further, BFI managed to capture the highest investor interest during the day noting 1,654 trades which resulted in a total quantity of 8.65Mn shares changing hands. During the day, a total of 23.21Mn shares changed hands, indicating an increase of 43.24% against the previous trading day. Price losers outstripped the price gainers by 105:67. Foreign participants were bullish during the day, where foreign buying of LKR 363.86Mn overtook foreign selling which amounted to LKR 213.50Mn; this added LKR 150.36Mn to the year to date net foreign inflow of LKR 16.10Bn. The local FOREX market for the day closed with, the USD selling at LKR 133.21/- and buying LKR 130.01/-.

Australia

• The Australian share market on Tuesday closed lower with the Reserve Bank of Australia's rate cut failing to lift the Australian share market into positive territory from its morning falls. The benchmark S&P/ASX200 index was down 5.7 points, or 0.11 per cent to 5,105.6 points.
• Today (07/08/13), the Australian market looks set to open lower following falls on Wall Street overnight amid warnings of weaker company profits.
• In economic news on Wednesday, the Australian Bureau of Statistics releases housing finance data for June and the Australian Industry Group/Housing Industry Association performance of construction index (PCI) for month just ended is also due out. Meanwhile, Reserve Bank of Australia assistant governor (Financial Markets) Guy Debelle, is scheduled to take part in a panel discussion at the Funding Australia's Future Forum hosted by the Australian Centre For Financial Studies. 
• In equities news, BHP chief executive Andrew Mackenzie is slated to speak at a Asia Society Australia lunch, in Melbourne, and 21st Century Fox (formerly News Corp) posts full year results in the US. 

Hong Kong

• HSI and CEI dropped 298 points or 1.34% to 21,923 and 75 points or 0.78% to 9,650 respectively. Trading volume rebounded little bit to HKD49.015 billion.
• Following HSBC (5.HK)’s interim results, which trailed analysts’ estimates, HSI dropped 413 points to day low of 21,808 in the morning, close to the key support line of 250-MA. But led by A-share market, HSI rebounded in the afternoon.
• Lee & Man Paper (2314.HK) released interim results with net profit climbed 44.1% yoy to HKD971 million but management is prudent on 2H2013 situation and expected no paper price raising, the stock price dropped 9.9% to HKD4.98. ND Paper (2689.HK) also lost 7.2%.
• Technically, HSI dropped below 10-MA at 21,995, we expect next support will be at 21,804. Resistance will be at 22,194.

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Morning Note

Company Highlights

Bonvest Holdings Ltd announced that that its subsidiary, Singapore Tunisian Investment Company (“STIC”) through its subsidiary, Singapore Tunisian Investment Company Medina, has completed the acquisition of land and building (the “Acquisition”) located at The Medina Tunis, Tunisia at the purchase price of TD2,800,000. (Closing Price S$1.125, -0.4%)

China Environment Ltd. announced that its wholly-owned subsidiary, Fujian Dongyuan Environmental Protection Co., Ltd. (“Fujian Dongyuan”) has on 5 August 2013 entered into a strategic cooperation agreement (“Agreement”) with Guangdong Power Engineering Corp. (“GPEC”). PEC is one of the main contractors in the People’s Republic of China (“PRC”) for thermal power EPC projects. Pursuant to this Agreement, Fujian Dongyuan will be the project partner of GPEC to provide the dedusting equipment, including electrostatic precipitators (“ESPs”), to thermal power EPC projects undertaken by GPEC for an initial period of three years effective from the date of this Agreement. In addition, PEC may at its discretion subcontract some of the thermal power plants’ desulphurisation and denoxification systems to Fujian Dongyuan. (Closing Price  S$0.260, -3.7%)

Source: Macquarie Research - 7 Aug 2013