Wednesday, 31 July 2013

MARKET OUTLOOK 31 JULY 2013

Market around Asia retreated on Wednesday on important FOMC announcement by the Fed. The market will be focusing on what the FED chief speaks about tapering QE 3. From a fundamentals point of perspective, good economy data plus strong corporate earnings will propel the market to rally on any dips towards the 16,000  DOW JONES millstone. More retail investors are taking the dips as the opportunity to buy into the market as majority of investors have missed out on the summer rally due to lack of confidence.

 
 
In Singapore, we see many trading opportunity to unfold. One strong theme plays are the China Singapore-Chips commonly known as S-Chips. Corporate governance in the S-Chips companies have been improving since the 2008-2009 global financial crisis. The bad ones are gone and left with the good ones. Majority of the S-Chips companies are trading at record single digit prices versus the peak seen in 2007. We see many s-chips companies receiving investor thumb-up from capital funds group. One good example is UnionMet. The top shareholder of UnionMet sold his 29% stake to an asia funds group at $0.14 at a market premium of  129% when the market price is trading at $0.061 only. We do not want our viewers to chase on UnionMet but to look out for potential S-Chips that will rally. How are we able to exploit such market opportunity in future? SgxWinner will look at the price action of the S-Chips stock, strong accumulation, volume and the ability of it going higher. One of our favourite S-Chips DAPAI this week have performed well and we believe that it will perform even greater as August comes.
 
For any queries, please email us at: sgxwinner@gmail.com
 

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