Joey was interviewed on 938 Live after the trading session ended on Friday, 31 July 2015. Do check out his Views on the market and what’s the STI level you should be watching right now. Are there Opportunities? . Noble Group has fallen as much as 22 per cent from Wednesday’s close, can there be more downside?
The full transcript of the interview can be seen below too.
Singapore market opened down 32 points with DOW Jones little changed and closing down 5 points after 2 days of solid gains. Weakness was mainly due to falling commodities prices and fresh market jitters from China with Shanghai Composite index opening down 1.2%.
STI tanked further in the morning, down by about 65 points before recovering slightly in the day. We have also seen commodities like Golden Agri and Noble Group hitting new lows and banks like DBS and UOB falling by more than 2% dragging the STI index lower too. And finally STI closed down 47 points.
Singapore market has been rather volatile to the downside. This is mainly due to weakness seen in Asian markets where we have seen the Shanghai Composite index tanked by more than 8% on Monday. That was their biggest one-day drop in more than eight years due to concerns over economic health.
Therefore, market sentiment was affected regionally including Singapore. There is also some uncertainty that the US Federal Reserve would hike rates earlier as the economy has showed some modest improvement.
Technically, STI has fallen below the 3250 support level today after briefly rallying last week. We can expect to see some support from 3150 to 3180 baring any negative news flow and with regional markets starting to stabilize.
Well, one can look at bargain hunting for some Blue chips like SGX on the back of the recent sell down. SGX has just released its results yesterday with 4Q15 profit of S$96 mn, up 24% YoY, pretty in line with consensus estimates.
The new CEO Loh Boon Chye sets his sights on bringing in big IPOs which can start to drive up momentum for the securities business as well.
Technically, we are seeing some support for SGX at around the 7.95 level after it hit a high of 8.55 last week and dipping along with the market this week. It has been trading above the longer term 200 days moving average which is a positive.
So one can consider timing entry around 7.70 to 7.80 levels for any rebound back up. SGX closed today at 7.97.
Well, Noble has indeed slumped by another 12.5% today, extending yesterday’s 11.9% tumble on heavy volume, with SGX issuing its routine trade caution on Noble.
Just a recap that Noble has been actively buying back its shares to shore up its share price over the past seven weeks, forking out a total of $131m, or 14% of its cash hoard.
However, this has been halted after Noble entered the blackout period yesterday where buybacks cannot be conducted two weeks prior its quarterly earnings, expected to be filed on 13 Aug.
So, that could be one of the reasons why we are seeing some weakness over the past 2 days. Technical, its trading range would be from 0.44 to 0.50 for now there can be more downside if the temp support at 0.44 does not hold further.
Back to you.