KLCI: +0.17% to 1802.6
JCI: +0.70% to 4578.2                          SET: -2.44% to 1448.5
HSI: +0.42% to 23438                           HSCEI: +0.23% to 10668
Nifty: +0.25% to 6204.9                        ASX200: +0.26% to 5365.7
Nikkei: +0.91% to 14693                      S&P500: +0.01% to 1744.7
      
MARKET OUTLOOK:
By Joshua Tan, Head of Research

Macro Data

USA: The National Association of Realtors said on Monday home sales fell 1.9 percent to an annual rate of 5.29 million units. August's sales pace was revised down to 5.39 million units from the previously reported 5.48 million units. Economists polled by Reuters had expected home resales to fall 2.9 percent to a 5.30 million-unit rate.

Taiwan: Export Orders rose more than estimated on Europe. Orders, an indication of shipments in the next 1-3 months, rose 2%, vs expectations of 0.4%.

Japan: The Japan All Activity Index rose 0.3%M/m vs the estimated +0.2% compared to 0.4% in July.

Hong Kong's annualized inflation rate logged 4.6% in September, higher than August's 4.5%, due to higher price of vegetables caused by the typhoon, based on data from the Census and Statistics Department. "Looking ahead, the subdued imported inflation and the moderated increases in fresh-letting residential rentals since early 2013 should help to contain the upside risks to inflation in the near term," said an official accompanying the statement. The government expects CPI to rise 4.3% this year from 4.1% in 2012.

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Regional Market Focus

Singapore

• The Straits Times Index (STI) ended 2.86 points higher or +0.09% to 3,195.76, taking the year-to-date performance to +0.91%. The 4.34bn shares traded were worth S$1.31bn in value.
• The FTSE ST Mid Cap Index gained +0.84% while the FTSE ST Small Cap Index gained +0.87%. The top active stocks were DBS (+0.24%), OCBC Bk (-0.58%), SingTel (-0.27%), Noble Grp (+3.52%) and Genting SP (+2.04%).
• We peg key near term support at 3,100 levels.
• Top Picks are DBS (Accumulate, TP: S$17.50), SingTel (Accumulate, TP: S$3.99) and Keppel Corp (Accumulate, TP: S$12.07). Deep Value Plays are Amara (Buy, TP: S$0.74), Boustead (Buy, TP: S$1.94) and Courts (Buy, TP: S$1.03).

Thailand

• Thai stocks lost as much as 2.44% on Mon amid domestic political worries ahead of the planned protests against the draft amnesty bill, which was set for second and third readings in early Nov 2013. 
• Institutional sell-off topped Bt4bn on Mon due partly to selling pressure from trigger funds while foreign investors continued to be net buyers of Thai shares.
• US equities traded in a tight range on Mon. The market’s focus will remain on key US economic data due out during the week especially US non-farm payrolls to be released today. As the third-quarter corporate earnings season is approaching, we view yesterday’s weakness as a good buying opportunity to play earnings season but any upside would continue to be capped by domestic political concerns.
• For short-term trading ideas, we advise investors to look for good candidates to play earnings season. Yesterday’s sharp losses amid continued foreign buying may set the stage for Thai stocks to see some rebound today. Support for the SET index is pegged at 1436 points. The short-term upside target is seen at 1500+/- points.
• Resistance for the main index is seen at 1460-1470 points and support at 1436-1415 points today.

Indonesia

• Most Indonesian stocks advanced Monday (21/10), amid broad gains in Asia as markets continued to be buoyed by improved sentiment after the US avoided debt default and China reported faster-than-expected third quarter economic growth. The Jakarta Composite Index (JCI) gained 31.607 points, or 0.70%, to finish at 4,578.178. Five of its nine major industry sectors supported gains on Monday, led by consumer goods sector that climbed 2.66%, and followed by property, construction and real estate sector with 1.69%-gain, and trade, services and investment sector with 0.77%-rise. The LQ45 index rose 6.042 points, or 0.79%, at 773.750. Stronger Rupiah also helped the JCI’s gain on Monday, as the country’s currency traded at below 10,900 against the US dollar. 151 shares rose and 102 shares fell Monday on the Indonesia Stock Exchange, where 4 billion shares worth IDR 5.11 trillion traded on the regular board. Foreign investors posted net sale of IDR 36.22 billion.
• The Jakarta Composite Index (JCI) will likely trade mildly lower today, with lack of momentum from global markets. Earnings reports from several constituents may provide support for the composite index. We expect the JCI to trade moderately lower today, with support and resistance at 4,535 and 4,607, respectively.

Sri Lanka

• The Colombo bourse experienced a setback during the first trading day of the week being unable to continue the 3 day bullish run. The benchmark ASPI settled at 5,946.65 shedding 29.86 points or 0.50%, and the S&P SL20 index closed within the negative territory at 3,287.53, losing 21.47 points or 0.65%. As at the daily closure the total market capitalization stood at LKR 2.47Tn, reducing the year to date gain to 14.08%. The market PER and PBV were 15.86x and 2.18x respectively. The turnover for the day amounted to LKR 1.05Bn, indicating a gain of 91.81% against the previous trading day. During the day, a total of 33.23Mn shares changed hands resulting in an increase of 78.96% against the previous trading day. Under the sectorial round-up Diversified Holdings (DIV) sector emerged as the largest subscriber to the sectorial performance providing LKR 504.53Mn accounting to nearly half of the day’s total turnover. Bank Finance & Insurance (BFI) made a sectorial contribution of LKR 409.40Mn to the turnover. With regard to share price movement, 136 companies lost while 47 companies gained within the trading day. Foreign participants appeared to be bullish during the day, to record a net foreign inflow of LKR 381.91Mn, resulted by foreign buying of LKR 544.42Mn and selling worth 162.51Mn. Furthermore, this assisted the year to date net foreign inflow to reach LKR 22.53Bn. The local FOREX market for the day closed with, the USD selling at LKR 132.61/- and buying at LKR 129.35/-.

Australia

• The benchmark S&P/ASX 200 closed up 0.6% at 5351.8 after an early rise to 5366.1, its highest point since June 2008. However, activity was light, with trading value shrinking to 3.8 billion Australian dollars (US$3.7 billion).
• Australia's stock market hit a fresh five-year high on Monday as offshore equity markets remained strong after the U.S. agreed to extend its borrowing limit last week, reopening its government and avoiding a potential debt default. Materials stocks outperformed amid expectations that economic growth in China would continue to support iron-ore prices.
• The index has risen 2.6% this month, having surged 4.8% from a five-week low of 5118.9 on Oct. 9 as investors bet that the recent partial shutdown of the U.S. government would damp U.S. economic growth, further delaying a potential reduction in the U.S. Federal Reserve's quantitative easing.
• Potentially supporting the outlook for mining companies, China will likely leave its monetary policy largely unchanged in the fourth quarter even though consumer inflation is running above target

Hong Kong

• HSI climbed 98 points or 0.42% to 23,438. CEI gained 24 points or 0.23% to 10,668. Trading volume was HKD60.278 billion.
• Google surged 14% and break USD1,000 last Friday in U.S.. HSI was firmer, led by Tencent (700.HK) and Galaxy Ent (27.HK), which gained 4.2% and 4.6% respectively.
• Technology sector out-performed with Kingsoft (3888.HK), Forgame (484.HK) and Kingdee Int’l (268.HK) climbed 4.9-7.3%.
• China automobile sector out-performed on better-than-expected sales in Sep, Greatwall Motor (2333.HK) and Brilliance Chi (1114.HK) gained 3.8% and 4.7% respectively.
• Hutchison (13.HK) declined 1.1% after announced scrapping plans to sell ParknShop supermarket chain.
• Technically, HSI failed to break Sep high at 23,554 yesterday, but we stay biased for eventual break above it. The next resistance and support for HSI are 23,554 and 23,000 respectively.

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Morning Note
Company Highlights

OKH Global has awarded design and build contract for the proposed new erection of a 4-storey warehouse with ramp up facilities at No 7. Pioneer Sector Lane. (Closing Price: S$0.760, 2.01 %)

Top Global Limited announced the incorporation of 2 wholly-owned subsidiaries as part of the Group’s ongoing business development: Marvel Development Holdings and Gerbang Development Holdings. (Closing Price: S$0.008, 0.00 %)

MIDAS Holdings Limited has won contracts worth an aggregate sum of RMB167.5 million (S$34.14 million) for the supply of aluminium alloy extrusion profiles and certain fabricated parts of high speed trains to major PRC train manufacturers. (Closing Price: S$0.475, 3.26%)

TTJ Holdings Limited announced new contracts totalling approximately S$41 million, boosting its latest order book to S$151 million which the Group expects to substantially complete in FY2014 and FY2015. (Closing Price: S$0.290, 0.00%)

CIVMEC Limited has won over SGD$210 Million of Contracts, increasing the order book to over SGD$330 million. (Closing Price: S$0.775, 2.65%)

United Envirotech Ltd expands its presence in Shandong China with a RMB105 Million (approximately SGD 21 million) Transfer-Expand-Operate-Transfer Contract. (Closing Price: S$0.875, 2.34%).

ValueMax plans to raise S$70.4million in IPO. The company plans to offer 138 million new shares (25.9% of the company) at 51 cents each. About 133 million shares will be offered under the placement tranche, with the remaining 5 million shares offered to the public.