Maybank Kim Eng downgrade Sheng Siong from BUY to HOLD with just 5% upside to SGD1.13 TP,
and upgrade Jumbo from HOLD to BUY with 40% upside to the revised TP of
SGD0.78. In the seasonally stronger 4Q, stocks that do better such as Jumbo
should outperform defensive stocks such as Sheng Siong, which typically see
weaker sales. On top of that, valuations favour Jumbo and positive catalysts
await it as well. But Sheng Siong could face neutral to negative developments.
Technically, on 26 Sep 2016, Jumbo exhibits a hammer and the price closed at $0.565 support. http://www.investopedia.com/terms/h/hammer.asp
This was followed by a price gain of $0.025 the next day with big volume the next trading day.
Today, Jumbo exhibits a doji with immediate resistance at $0.605. The next resistance will be the 50 day-Moving Average of $0.620.
http://www.investopedia.com/terms/d/doji.asp
Down Jones on 09 Sep 2016 closed 394.46 points lower on 09 Sep 2016 and shares in Europe and Asia dropped the most since the aftermath of the U,K. Brexit vote in June after Fed Bank of Boston President Eric Rosengren said the economy could overheat.
Singapore market is closed today for Hari Raya Haji holiday. The Straits Times Index (STI) is likely to fall about 2% tomorrow when it opens.
In my point of view, markets have recovered very quickly after the Brexit vote and finding an excuse to sell off. It will be good opportunity to buy blue chips shares when the sell-off is done.
The important support for STI will be the 200-day Moving Average at about 2,800 points. If it breaks the 200-day MA, the next support will be at 2,770 and 2,720.
Telco shares fell on 02 Sep 2016 amid bids for 4th player.
http://www.straitstimes.com/business/companies-markets/telco-shares-fall-amid-bids-for-4th-player
This could be a buying opportunity as SingTel, StarHub and M1 shares are defensive. They provide yield between 4.4% to 6.1%.
Should the bids for 4th telco are not successful, these stocks should stage a rebound.
Here are the technical analysis for the stocks.
SingTel (Z74) Technical Resistance: $3.89 and $3.97
SingTel (Z74) Technical Support : $3.84 and $3.75
StarHub (CC3) Technical Resistance: $3.51 and $3.55
StarHub (CC3) Technical Support: $3.47 and $3.43
M1 (B2F) Technical Resistance: $2.52 and $2.55.
M1 (B2F) Technical Support: $2.49 and $2.46.
