Last night, Wall Street suffered its biggest drop in a month due to the Cyprus fear as well as weak earnings from oracle. With all the headline news coming out, we think that any correction is a good opportunity to buy on dips. The bull run seen in Wall Street is getting stronger. With better than expected results from China's Flash Manufacturing PMI, data came in at 51.7 beating Bloomberg's survey of 50.8 and exceeding it previous 50.4. All this bold well in Asia to do better in 2013.
The local market Straits Times Index open slightly lower today due to profit-taking plus many blue chips counter going x-dividend. Sentiment in penny shares is expected to remain strong on rotation plays. Focus today will be on S-Chips Penny Stocks with low valuation that have yet to rally. We think the better than expected PMI will give S-Chips Stocks a boost in the coming days.