Less investment opportunities in the property sector in 2011

Extracted from http://news.fnchn.com/Funds_Less_investment_98374.aspx

2011-01-12 14:23:41 | View：8 | Tags：property sector

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Since early this year, cyclical stocks such as property stocks have made quite strong performance. However, a great number of fund companies view that there are not many investment opportunities in the property sector in 2011.

As the property market is closely related to the people’s livelihood, it will be continuously suppressed by policies. Therefore, it would be hard to see a rally in property stocks. Some fund companies even asserted that the cycle for the financial and property sectors have terminated and the whole sector many only present partial trading opportunities.

For investment opportunities in other cyclical sectors, fund companies have different opinions. 　
Some optimistic fund companies hold that the performance growth in cyclical industries is worth expecting as the valuation level of cyclical sectors is close to the bottom and it is getting clearer that the Chinese economy will continue to go up in 2011.

Some fund companies maintaining cautious attitude point out that it would be hard for cyclical sectors to have trend opportunities. Policy control pressure will remain high in 2011 and this will directly suppress the performance of cyclical sectors such as banks and properties.

Predicting Future Stock Prices

Extracted from http://www.buzzle.com/articles/how-to-predict-stock-market.html

Break Out Patterns
Intraday trading strategies can involve studying the various types of stock break out patterns. The breakouts can be either in the upward direction or the downward direction. The breakouts actually denote the movement of a stock out of a fixed range which has been prevalent for several trading sessions. So, a breakout can help us to determine whether to go long or short in any given situation.

Volume Changes
Volumes on a stock refer to the number of shares being traded on it. We can easily calculate the average of shares being traded with the help of the monthly and weekly volume data. If the volumes being traded on a stock increase more than the weekly or monthly averages, then it may denote rising investor interest and thereby, a chance of the stock going up. Observing volume changes is important for those looking at day trading for a living.

Look for Improvements in Company Performance
Keeping a tab on corporate performances is one of the ways of how to predict stock market. All days are not the same for business or corporate houses. If a firm delivers poor financial results for a few quarters, then this does not mean that it lacks the potential to become a market leader in the future. There may be some genuine reasons for which the firm could not deliver as per the expectations. If there are signs of recovery or rise in business, then betting on such stocks as potential future multibaggers would not be a bad idea. An extensive stock research will help you identify such stocks.

Analyze the Valuations
In the discussion on how to predict stock market, analyzing the valuations of counters has significant importance. The answer to the question how to predict future stock prices is by looking at how comfortable the valuations of a stock are. For judging the valuations, we take into account the price to book, cash flow, operating incomes, cash in hand, earnings per share and price to earnings ratio of the stock. The investments are made only if these financial data are found to be favorable and conducive. If the valuations are stretched or expensive, then a sharp fall in the stock price can be expected.

International Financial News
Business news has a considerable impact on stock prices and this has been proved on many occasions. As a smart stock investing professional, you should be able to decide whether ht effect of a particular news on a company would be positive or negative one. If you are successful in predicting stock market, then chances of getting a good appreciation in terms of value is possible.

Stock trading is a risky field and should be practiced by expert traders only. The above content on how to predict stock market prices will guide you in the right direction. Apart from the stock market, you can also consider other investment options such as real estate, gold and deposits, to safeguard your capital. So, hoping that you will utilize the above information fruitfully, I would like to sign off here. Good luck for the investments.

How will Japan quake affect Singapore stocks?

Extracted from http://sg.finance.yahoo.com/news/How-Japan-quake-affect-yahoofinancesgwp-3124247818.html?x=0

Amongst the STI constituent stocks under our coverage, SIA's (BUY, TP:S$17.20) impact is probably larger than the rest. SIA has a high flight capacity exposure (Nagoya, Osaka, Fukuoka and Narita), which could face a risk of poor load factor. While management has yet to disclose the exact capacity exposed in its Japanese routes, we estimate that SIA risks recording low load factor for 15%-18% of its total capacity.
For Tiger Airways (BUY, TP:S$1.65), a budget airline, we do not expect any negative impact from the Japan quake as it currently does not operate any flights to Japan.  In fact with the catastrophe in Japan, tourists will be deferring their holiday plans there hence there may likely be an increase in travel to other destinations which Tiger services.
The impact is minimal for most of the other sectors.

• The Singapore banks are primarily exposed to the ASEAN and HK markets and have minimal exposure to Japan.
• As for the oil & gas segment, Keppel Corp (BUY, TP:S$13.94) has a stake in a Japan unit involved in fabrication and supply of specialized steel parts, but this unit's earnings contribution share to Keppel is insignificant.
• The REITS under our coverage have no significant assets in Japan, except for ParkwayLife REIT, which has some exposure in Japan (33% of portfolio value), but most of their properties are located in regions which are relatively less affected by the earthquake, and none are within the evacuation zones of the nuclear plants.
• Small impact on commodity counters. Noble (BUY, TP:S$2.58) and Olam (BUY, TP:S$3.70) have little exposure to Japan. Straits Asia Resources (SAR) (NEUTRAL, TP:S$2.49) sells coal to Japan and coal power as an alternative to nuclear could lead to higher coal prices, a positive for SAR.
• Negligible impact on telcos. Singtel (NEUTRAL, TP:S$3.00) has the largest proportion of mobile revenue coming from roaming at 20-25% but Japan is not a key contributor in terms of outbound roaming revenue.