SGX IForex Recommendations

TRADING TIPS :

EUR/USD was up 0.72% at 1.2289.The Labor Department reported earlier that the U.S. economy added 321,000 jobs in November, well past expectations for a 225,000 reading. October’s figure was revised up to 243,000 from a previously estimated 214,000, pointing to underlying strength in the labor market.The U.S. unemployment rate remained unchanged at 5.8% last month, in line with expectations, and the numbers fueled expectations that the Federal Reserve will raise interest rates in 2015, possibly earlier than once anticipated. A separate report showed that the U.S. trade deficit hit $43.40 billion in October, down from $43.60 billion in September, whose figure was revised from a previously estimated deficit of $43.00 billion.

INTRADAY OUTLOOK

Support: 1.2267

Resistance: 1.2303

RECOMMENDATION:

1. Buy EUR/USD Above 1.2305-TG:1.2325/1.2355 SL 1.2275

2. Sell EUR/USD Below 1.2265-TG:1.2245/1.2215 SL 1.2295

INTRADAY OUTLOOK

Immediate Support: 121.27

Immediate Resistance: 121.70

RECOMMENDATION:

1. Buy USD/JPY Above 121.72-TG:121.92/122.22 SL 121.42

2. Sell USD/JPY Below 121.25-TG:121.05/120.75 SL 121.55

SGX Stock Recommendations

MARKET UPDATES :

• OLAM International has agreed to buy US peanut sheller McCleskey Mills for US$176 million, the commodities trader announced early Friday. McCleskey is the third-largest peanut sheller in the United States with a 12 per cent market share and an annual capacity of about 250,000 farmer stock tonnes, Olam said. The acquisition will give Olam a foothold in another step of the US peanut supply chain. Olam also controls Universal Blanchers in the US, which specialises in the toll blanching and ingredient manufacturing of peanuts.

• KEPPEL Telecommunications & Transportation (Keppel T&T) will be holding an extraordinary general meeting (EGM) on Nov 25 to seek shareholders’ approval for the planned listing of Keppel DC Reit on the main board of the Singapore Exchange. Keppel T&T will also seek shareholders’ approval on a proposed divestment of its interests in Keppel Digihub, Keppel Datahub 1, Gore Hill Data Centre and Citadel 100 Data Centre, and their proposed injection into Keppel DC Reit.

• Oil prices are expected to keep sliding into 2015, held down by weak demand and increased shale production, the IEA said on Friday, as it held its forecasts for consumption growth. The International Energy Agency said while there had been speculation that the high cost of shale extraction “might set a new equilibrium for Brent prices in the US$80 to US$90 range, supply/demand balances suggest that the price rout has yet to run its course.”

• The FTSE Oil and Gas index saw some volatility in Jan, but recovered in the subsequent months such that the index traded pretty much range-bound in the first eight months of the year. We downgraded the sector to NEUTRAL on 2 Sep 2014, and the FTSE Oil and Gas index has lost about 20% of its value ever since.

• THE Monetary Authority of Singapore (MAS) reprimanded the Singapore branch of the Hongkong and Shanghai Banking Corporation (HSBC) on Thursday for breaching section 23B(3) of the Financial Advisers Act. Under the section, a principal cannot allow any individual to provide any type of financial advisory service on its behalf unless the individual is an appointed representative or provisional representative in respect of that type of financial advisory service.

• DBS Group unveiled on Wednesday its new S$25 million regional brand campaign, celebrating the bank’s role in the history and development of Singapore which turns 50 next year. The new brand campaign will be launched in Singapore later this week and then unveiled in Hong Kong, China, India, Indonesia and Taiwan early next year. A slew of innovative marketing initiatives large and small will be rolled out, building up to Singapore’s 50th celebrations next year.

Current Market Update

Tokyo (Nikkei Average) flat 
Hong Kong (Hang Seng Index) up 0.3% 
Shanghai (Shanghai Composite Index) up 1.4% 
Sydney (S&P/ASX 200) up 1.1% 
Seoul (Kospi) down 0.3% 
Mumbai (Sensex) down 0.1% 
Taipei (Taiex) up 0.1%