Singapore Budget 2017 – What Now?

Singapore Budget 2017 was delivered by our Finance Minster Mr Heng Swee Keat  on Feb20 and we’ll just cover it briefly and what are some stocks that we are looking at. More can be read on the budget over here.

There were no major surprises for the Budget 2017 and some of the focus was on the smart Nation or digital economy, accelerating infrastructure projects and helping sectors facing cyclical headwinds.  Our markets didn’t react too much after the budget was announced so markets were not expecting too much to begin with.

With a 4.5 billion dollar programme to promote growth and competitiveness , the Committee on Future Economy (CFE) continues to emphasize the need to build skills and capabilities and to develop an innovative and connected economy. Digital Disruption continues to the buzz word and firm will have to adapt to that. St Engineering subsidiary St Eng Electronics could be a beneficiary of this as their Smart City solves city challenges and integrates systems that sustain future growth.

St Eng

Just some technical levels we’re looking at: 3.60-3.62 as the immediate support. If it breaks lower could see 3.45 levels in which we might consider entering. Currently its a little high now. Would prefer for a pull back .IF it breaks the 3.70 resistance we might see it eventually test 3.82.

 

Construction spending : The Singapore government will bring forward $700 million of spending  on public- sector projects in the next two fiscal years . Some firms we are looking at would be Hock Lian Seng which has jumped close to 10% since budget day. They boast over 45 years of experience in civil Engineering & Construction. They have been carrying out civil engineering works for bridges, expressways, tunnels and MRT with a few of these being awarded ‘construction excellence’

 

Hock lian

Hock lian seng hitting 60 cents which is the all time high. Some pullback would be good to levels  of 56 or 53 or even 50 cents and over there we might consider an entry. If it breaks 60 cents we might probably see 68 cents first. 

Another company we’re looking at would be ISO Team. Having been around for 19 years they are an established player in the building maintenance and estate upgrading industry in Singapore. They are also the exclusive applicator of paint works for both SKK and Nippon Paint in the public housing sector in Singapore. Major customers include town councils and government bodies.

Iso

Iso Team usually consolidate for awhile and breaks out then consolidate again. Would probably have to buy and hold rather then to time the break out. Around 0.375-0.395 would be a good be good entry point. If it goes lower then we’ll have to wait and see. 

The offshore and marine sector continue to remain weak and even with the foreign workers levy hike deferring for another year this will probably benefit SMEs a little more.Keppel Corp and Sembcorp Marine would be our picks for the O&M sector.

This is not all but of course as said we’ll briefly cover some points of the budget and do email us if you would like more ideas on the Singapore budget 2017.

Yours

Humbly

Kelwin&Roy

Sunpower- Anymore Power?

Sunpower- Anymore Power?sunpower

Sunpower Group Ltd. is recognised as a specialist in the design and manufacture of such energy saving and environmental protection products .  If you’re interested you can find out more on their website.

It had a very powerful run and it seems resisted for now. Will it have more power to break that downtrend line? We’re hoping not yet. As you can see it’s currently also below the 10 days exponential moving average which is not a good sign. A good pullback would be healthy and we’re looking at a short entry around 0.795-0.805. We can place a stop loss at 0.835

We feel that the risk reward is not bad if Sunpower can move lower to 0.66 level Remember not to naked short but use Poems CFD(DMA) for shorting as this might take time to come down.

Yours

Humbly

Kelwin&Roy

Keppel Corp – Getting A Little High

Keppel Corp – Getting A Little HighKC

Keppel Corp is a stock that we mentioned in our market outlook article back in January when it was around $6.20. It’s been a month plus and keppel Corp stands at $7.22 today. We feel that it’s reaching resistance for now and a pull back would be healthy.

We have drawn the uptrend channel line which acts as a resistance. A short entry could be around 7.23-7.25 area with  a tight stop loss around 7.28-7.30.

What might happen here could be that it might start pulling back from here or if market is still so bullish it could break out from this uptrend line we drew. We’re hoping for some pullback before we can make a re-entry.

Yours

Humbly

Kelwin&Roy

Alliance Mineral – Lithium Charged

Alliance Mineral – Lithium Charged Allaince

Alliance Mineral was a stock we shared back in early January when it was around 0.096. It has since then ran up a lot to close at 21 cents.

Alliance Mineral does lithium mining and lithium has been in demand from usage in handphone batteries to batteries in electric cars. Recently Alliance Mineral has been running due to the recent finding in their western australian mine which is rich in lithium and tantalum having a significant value in today’s market. With Lithium being in demand this is one stock we want to look at for mid term .

We have drawn a few support and resistance zone The first resistance being 22 cents as it crossed 0.205 then after we might see 25 cents. We might want to look to enter on pullback and these are the support levels that we are seeing: 0.185 and0.167. This stock has crossed 20 cents so now each move up is significantly bigger so do take note of your risk.

Yours

Humbly

Kelwin&Roy