Chart for StraitsAsia

Commodities firm Noble Group and Indonesian coal miner PT Indika Energy Tbk are among the companies pursuing a bid for Straits Asia Resources , according to sources familiar with the matter, in a deal that could be worth more than $800 million. Bidders are setting their sights on the two Indonesian coal mines that the Singapore-listed company controls.

Australian miner Straits Resources Ltd , which owns 47.1percent of the company, said last December it was reviewing what to do with the stake after receiving approaches from buyers. Bids for the stake are due at the end of this month, said the sources, who declined to be identified because they were no authorised to speak publicly about the deal.

If a suitor goes for the entire 47.1 percent stake it will have to make a bid for the whole company under Singapore rules. The market capitalisation of Straits Asia Resources is S$900 million($597.2 million).

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Hourly Chart for Capitaland=$2.41 (may rebound to yellowline)

So any right issue for Capitaland?

US equity technicals - The clock is ticking

There is no change to our preferred and alternative outlook for the US market. From the 5-wave decline in last week's hourly charts, we deduce that the current rebound is probably the corrective wave-2 of the final major wave-5. The DJIA could rebound to about 8,498-8,637, its 50-61.8% FR levels while the S&P500's rebound will end close to 889, its 61.8% FR level. Both wave counts are still valid. Either way, we are looking for a major down leg after this minor rebound. Our preferred wave-5 target of 6,600 for the DJIA is still possible if the 7,400 level gives way. Otherwise, a bullish double bottom could form, followed by a strong relief rally.

Straits Times Index (Hit resistance both yellowline and longterm moving averages in reds)

STI - Yesterday 80 points of rebound has pushed STI towards the resistance reinforced by long term moving averages (in reds). Upside limited from here.

STI - Profit taking likely to set in as STI moves close to 1800

Despite finishing at its day’s high of 1766.08 yesterday, volume was a meager 645m units valued at $777.6m as Wall Street’s expected overnight rally coincided with players’ wish to start the ox year on an auspicious note.

The STI is about where it was at end-December (1761.56) as January has turned out to be a disappointment after a rousing start, climaxing at 1959.95 intra-day on Jan 7 although the day’s close at its lowest of 1880.58 should have been seen as a sell signal.

The high turnover in early January was misleading and it is proven wrong to view this as ushering a strong January effect run-up. In fact it marked a selling climax after the rebound in December and the lesson is likely to last longer in players’ minds.

This month has continued to see reduced volatility with the index ranging from a 1960 high and a 1677 low (283 point band) compared to an even milder 205-point trading range in December (1844high/1639low).

November however saw higher volatility, a 363 point movement between 1933.51 high and 1570.23 low) while October was extremely volatile with the STI swinging 925 points between 2399 and 1474.

From this behaviour it can be seen that a key resistance going forward is around 1930-1960 but before this 1840-50 is also a significant hurdle which is likely to cap the latest bounce.

In fact on a closing basis, there was a rapid loss of support from 2009 closing high of 1913.66 on Jan 5 to 1881, 1828, 1806, 1776 and 1762 in the immediate following 5 trading days.

Thus profit taking is likely to set in today as the STI is already at 1766. Stocks which enjoyed a strong run-up yesterday led by banks may be more vulnerable as the STI is not expected to break 1800 easily.

The STI’s technicals such as RSI at 52 are showing mildly overbought levels but this should not lead to a serious pullback.

Overall the index is in consolidation mode around 1700-1800 with buying interest expected to be strong in the 1750-80 support while profit-taking becoming more aggressive around 1800-1850.

Straits Times Index (Will get worst before it get better....SELL)

Lets wait for 1500 or lower and get enter.

Weekly Chart for Straits Times Index=1,697 (Target at weekly SAR 1,538)

Wish you and your family a Happy Lunar New Year. Hold on to your job as long as possible and save as much as possible. This winter is going to be longer than many expected.

When Will The Selling End?

The previous five years were great for investors living in a dream world, but with this market experiencing the fourth worst decline in the last 80 years the real question is, is the nightmare now beginning?

Unfortunately, the short answer is yes, according to technical analyst Louise Yamada. She says, "I think the charts have been forewarning us that the markets are deteriorating."

"The 2002 lows are very vulnerable and chances are good they are going to be broken," she tells the traders, grimly.

If you look at the chart below you see a massive double top with a critical 10 year support at 2002, she says. "And we're breaking that support."

In other words, not only has the S&P fallen below its 2002 lows, but it will likely continue lower from there.

Sound far-fetched? Maybe but Yamada is one of the most celebrated technicians on the Street, winning the award for best chart analyst 4 years in a row from 2001 to 2004.

She has a 600 target on the S&P 500 and a 6,000 target for the Dow. That's where she thinks we're heading.

SPC - Likely more near-term upside

- SPC is likely to experience more near-term upside, following a positive retest of the key support provided by the 3-month uptrend line and 50-day moving average.

- The stock had not only formed a bullish engulfing candlestick but the subsequent confirmation saw SPC break above the centre line of the Bollinger Band.

- Besides the positive crossover of the Stochastic indicator just above the oversold region, the OBV indicator continues to remain bullish.

- We peg the immediate resistance at $2.52 (23.6% Fibonacci retracement and also near the upper Bollinger Band) ahead of $2.99 (38.2% Fibonacci retracement).

- We see immediate support around S$2.10 - 2.20, ahead of the Oct’ 08’s low of $1.76.

STI Trading Towards 1600

The STI closed below support at 1718 yesterday and should be trading in the 1718 to 1600 range from now on. With the S&P 500 closing sharply lower on 20 January 2009, there are two likely scenarios for STI which trades closely with the S&P 500. The first, is for a minor one to two day up move, as the equity market digests the recent drop and the second, a sharp move down, bringing the STI near the 1600 level. The STI should continue trading lower either way, unless it rallies above 1760 in which case, we will have to reassess the situation.

The S&P 500 declined sharply and closed below major support at 818, despite an upbeat speech by the newly inaugurated US President. From a sentiment perspective, this can be interpreted as a decline on good news. Markets are ‘supposed’ to rally on good news, hence the discounting of good news indicates to us that the market is bearish and should continue to push lower.

From a technical analysis perspective, the S&P 500 has closed below 818, which is major support. We can view support and resistance bands as a series of steps. Previously, the S&P 500 was trading in the ‘step’ between 857 to 818. Now, closing below 818, it now trades in the ‘step’ that goes from 818 to 741.

We have already tested the October 2002 low of 768 last November and rallied off it. Whatever buying that has taken place at that level has already been used and it should no longer be support. For these reasons, 741 is a critical decision level. It is the bottom of the last ‘step’, so beyond 741, the S&P 500 has no more historical support. A close below 741 should be the beginning of another leg down in this bear market.

However, the move down on 20 January 2009 (most recent bar on the chart) is rather steep considering recent volatility. There is a possibility of a one to two day up move to the 826 to 830 level (50% retracement of the down move on 20 January 2009) before resuming a move down.

Technicals for the STI are somewhat similar to the S&P 500. We have closed below 1718 and are currently trading in the ‘step’ between 1718 and 1600. 1600 is considered a psychological round number, however, because there has not been a lot of activity around 1600 can be considered minor support. A close below 1600 will take the STI to the next trading range between 1600 and 1473.

1473 is an important low. Should the STI maintain a close below 1473, the next leg of the bear market should resume. In this case, the next price target would be between 1225 (September 2001 low) and 1170 (March 2003 low).

We reiterate from last week’s technical piece, “The CRB currently represents growth that is essential to push equity markets higher”. The reverse holds true as well. On 20 January 2009, the decline in the CRB was in the same direction as the equities markets and we can observe that this relation also holds for the STI, with the STI closing lower yesterday.

The CRB is approaching 208, which is a critical support level (previously mentioned). At the 208 level, the CRB might test and rally off support for a few days. Should this happen, equities might see a few up days together with the CRB, and at very least, a rising CRB would slow down any decline in equities. Beyond 208, the next historic support level is 183, the October 2001 low.

Equity markets are inching closer to their recent lows, continuing to decline in tandem with the CRB Index. Short-term momentum is down, however, on a daily timeframe, there is still no good risk to reward ratios for either the indices or the component stocks. As mentioned above, both the STI and S&P 500 have ‘shifted gears’ to trade in the support and resistance zones closer to the recent lows.

The recent lows for the S&P 500, STI and CRB are critical numbers to watch for at this point in time. A steady downtrend will very likely resume when all three markets close below their recent lows, at which time, we will be looking out for individual stocks as potential short candidates.

Weekly Chart for SSE A SHARE IDX

Better than DJIA...may signal that China could recover first

Ox Year = Bull Year?? HSI

HSI: The consolidation rally from 10,700pts took HSI to a high of 15,000+pts. However, in a matter of 2 weeks, it gave up 3,000pts and broke down of the consolidation pattern. At the peak of the rally, the HSI did a bearish engulfing pattern followed with a gap down candlestick the next day. If you can recall, think about what happened after I sent email alerts on bearish engulfing patterns on HSI last year. HSI may just head back down towards 10,000+pts again.

Ox Year = Bull Year?? STI

STI: The index rebounded from a low of 1,480pts in Oct'08 to a high of 1,900+pts in early Jan. Without the economy facing a 'rainy day' that prompt our usually 'thrifty' government to consider using the country's national reserves, there won't be much room to go up after our Budget Day goodies. Anyway, this is probably priced in so the rally may be a really short one. STI looks likely to test the 1,480pts support (coincidentally that's 38.2% absolute retracement of its historical high of 3,900pts) in the coming weeks. If this support breaks, the next one is at the 1,200pts low during the 9-11 attack and the 'Revenge for my father' War in 2003 by George Bush. For the sake of many, this support better hold if not we will really have a 'Great Singapore Sale'.

Ox Year = Bull Year?? Dow

With the 'disastrous' Rat year coming to an end, many will be hoping for a recovery in the coming Ox year. Is the market going for another bull run? Personally, I don't think so. After a Black October last year, global markets basically consolidate and range trade for the past 3 months.

However, despite a series of unprecedented coordinated rescue plans and stimulus packages by the major 'economic superpower' countries, global economies failed to recover. Instead, they sky-dive during these months and global recession hit the world. Corporations after corporations announced big losses, fold up or got their corporate scandals exposed. If not, some will 'Ask Idiot Grant' from Uncle Sam to pay for their executives to play half a million dollars of golf. To me, this is a set-up for one more major stock market crash. I have a bad feeling (depending on perspective it might be good) that another major bank going to do a 'Lehman Sisters'.

DJIA: Dow Jones is sitting precariously at the edge of a support line now. A small rebound might be possible but unless the US banks sort out their problems and the economy turns around soon, this support may not hold for long. A break may see another 1,000pts correction down to 7,000pts.

Chart for SembMar=1.56

Broke below Wedge Formation...Target $0.80

Dow (Yesterday about 400 points was just a continuation of the Bear Flag Breakdown...)

DJIA - I warned on the 13 Jan 2009 that DJIA could potentially break down from the Bear Flag formation. The breakdown occurred on 14 Jan and after two days of brief technical rebounce, yesterday 400 points of fall is just a confirmation of our Bearish view.

If one take a look at the Weekly Chart, the Height of the Bear Flag is about 3,432 points (11,442 - 8,010). The Technical level for DJIA = 8,380 - 3,432 = 4,948.

This target is inline with our last year Monthly Chart forcast for DJIA to reach 5,000 at some point in time.

Possible technical rebound on Keppel and SembMar

Most traders may not be expecting any meaningful rally in the next few weeks as the bullish impact of Budget goodies could dissipate within days amid renewed bearish developments in the US on top of a slew of likely earnings shocks during the current reporting period.

So far the market has reacted differently to the results of 2 key index stocks, SPH ($2.70) and SGX ($5.20). While the former continues to fall post-results, down 17.6% from an early Jan high of $3.29 to $2.71 low today, SGX which also dropped from $5.88 high to $4.93 on announcement date Jan 15, has rebounded to as high as $5.29.

This raises hopes that the market will continue to price in earnings disappointments going forward with the next major release on Budget day itself Jan 22 by Keppel Corp ($4.08).

It is now down 25.6% from early Jan high of $5.44, an even worst performance than DBS ($8.70) which had bounced off from $8, which was a 22.9% drop from $10.38 in early Jan.

DBS is still nearly a month away from its Feb 13 results date but its early rebound raises hopes that current underperformers led by KepCorp, UOB ($11.90) and SembCorp Marine ($1.59) could stage technical rebounds in coming days.

Traders should watch out for sharp intra-day falls to or below their lows last week when the STI hit intra-day low of 1694 on Thursday as oversold situations will emerge.

An example is KepCorp is now down almost twice the STI’s 13.6% loss from 1960 to 1694 last week, but it also had a strong rebound from Oct’s intra-day low of $3.35 to $5.44.
In fact it has retreated below the 61.8% fibonacci retracement ($4.15), which was the close on Oct 28 when it hit $3.35 year’s low.

Oversold indicators come from RSI, down from 70 to 39 now although short term MAs which made a bullish cut earlier this month have quickly reverted to a bearish cross soon after.

Any further weakness ahead of Thursday’s results around to $3.90-$4 which is a key multi-year support offers trading chances. Resistance is around $4.40-60 (Today’s high is $4.30).

Fellow offshore play SembMarine ($1.59) too is near last week’s $1.55 low, which is 24% from early Jan high of $2.04. Parent SCI ($2.22) has rebounded after losing 23.6% from $2.75 to $2.10 last week.

The latter has rebounded to $2.24 while SCM should hold up around $1.50 and not test its historic $1.40 support area. RSI is holding up at 43, better than KepCorp although short term MA behaviour seems alike. Resistance is around $1.80-90.

Straits Times Index (gap down and technical rebound to greenline..stay clear)

Looks like STI can hold 1700 well today.

US equity technicals - “No”bama rally

Five-wave down leg indicates “Obama” rally is unlikely this week. Since 6 Jan, the DJIA has shed 1,092pts or 12% to reach a bottom of 7,995pts last Friday before springing back to 8,281pts. The fall was a five-wave decline, which is a sign that the “Obama” rally that most investors are expecting might not pan out this week. In fact, we think the US market is set to lose ground after a rebound on Tuesday.

Rebound target. Assuming a 38.2-50% Fibonacci retracement (FR) of the recent decline, the DJIA’s rebound could end between 8,412 and 8,541pts. The S&P500’s recovery could end between 865pts and 880pts. A stronger rebound towards the 61.8% FR pegs the DJIA at 8,670pts and S&P500 at 895pts. But this is expected to be followed by a sharp correction towards month end or early- to mid-Feb, depending on whether the wave “5” down leg or wave “b” is taking place.

Both wave counts may be still in play. Both our preferred and alternative wave counts are still valid. In both wave counts, we are looking for a major down leg after the end of this rebound. If our preferred wave “5” has already started and assuming that wave “5” equals the length of wave “1”, the DJIA could hit 6,600 before bottoming. Confirmation of wave “5” would be a break below its 7,449 Nov low.

7,320-7,449 target in alternative wave count. Assuming the DJIA springs back to the 38.25-50% FR (8,412-8,541pts), followed by a 1,092pt correction, which is similar to the 7-16 Jan decline, the likely target for our alternative wave count is 7,320-7,449. The 7,449 target would indicate a bullish “double bottom” formation. This should be followed by a strong bounceback or late “Obama” rally in Feb.

738-753 target for S&P’s alternative wave count and 624 for preferred wave count. Assuming the S&P 500 rebounds towards the 38.25-50% FR between 865 and 880pts, followed by a 126.9pt correction, which is similar to the 6-16 Jan decline, the likely target for our alternative wave count is 738-753. If our preferred wave “5” down leg is taking place, the S&P 500 target is 624pts, assuming the length of wave “5” equals wave ‘1”.

HANG SENG INDEX (Yellowline also turning south)

HSI - On 13 Jan 2009, Trendline support was broken. After two days of brief
technical rebound, HSI continues it fall today. Yellowline is turning south
now....

Technical on Sino Techfibre, DMX, Longcheer

Sino Techfibre Ltd. (SINOT SP; S$0.19 - SELL): The stock has broken below its support turned resistance trend line.

DMX Technologies Group Ltd. (DMX SP; S$0.095 - SELL): Any rebound towards the downward channel resistance of S$0.105 is a good opportunity to exit. Next resistance is at S$0.125.

Longcheer Holdings (LHL SP; S$0.31 - BUY): The stock has overcome the S$0.28 resistance turned support trend line. Near term outlook is positive but expect some healthy consolidation.

Technical Analysis - Straits Times Index

Summary

- The Straits Times Index (STI), following the mild consolidation around 1694, could be poised for a near term rebound to test the 6-month downtrend resistance line near the 1849 level.

- Over the medium term, we expect the index to remain entrenched in its downtrend, possibly easing further to test the Oct 2008 low of 1474.

Overview

- Over the last 10 years, the STI has been riding on a bullish uptrend line and peaked at its all-time high of 3906 in Oct 2007.

- Since then, the STI has been in retreat. Due to the extent of the global financial crisis, it even went into a free-fall after a brief rebound in May 2008.

- Not only did the 5-month long plunge wipe out all the gains that the STI had accumulated since 2003, but it also broke below the 10-year uptrend line.
Where are we now?

- After reaching a 5.5-year low of 1474 points in Oct 2008, the index has since been consolidating within a symmetrical triangle – this is a clear sign that the market remains divided over the direction of the STI.

- While the STI managed to briefly break out of the symmetrical triangle to reach a 2-month high of 1960 (on 7 Jan 2009) on heavy volume, it failed to clear the resistance posed by the 6-month downtrend line.

- As a result, the STI has given up all its recent gains. More importantly, the STI also broke below a critical support level at 1750, which is marked by the intersection of the 10-year uptrend line, 50-Day MA and the apex of the symmetrical triangle.

- Technically, these strong support levels have turned into strong resistance levels. Should the index fail to break above these levels soon, there could be a very bearish implication to its medium-term trend.

Support / Resistance Levels

- The 50-day MA, the 10-year uptrend line and the 6-month downtrend line are the immediate resistance levels that the index must convincingly clear to signal any potential recovery in the near-term.

- However, we do expect the market to get a mild boost from the upcoming Budget 2009 and could see the index successfully retake the 1750 level. - We believe the next resistance levels are found around the 1933 support-turned resistance level and subsequently at around 2048 which is the Fibonacci 23.6% retracement level between the Oct 2007 time high and the Oct 2008 low.

- But failure to clear these next two key resistances could see the index ease back towards the lower Bollinger Band (currently around 1668), ahead of the next support at 1474, which was the low set in Oct 2008.

- We see the 6-year low of 1200 as the last line of defense.

Bearish technical indicators

- Over the past few trading sessions, the MACD has cut back down and crossed under the centerline. In our opinion, this reversal is a signal that the recent positive momentum has waned and there could be further downside risk in the medium term.

- The Accumulation/Distribution line has also been on a downtrend over the last five months, suggesting a continuous outflow of money and a prevailing selling pressure in the market.

Conclusion

- In the near term, we expect the STI to consolidate around the lower Bollinger Band before making a rebound.

-But given the bearishness of the overall picture, we do not expect any meaningful rebound of significant magnitude to take root.

- Instead, we expect the primary downtrend to persist over the medium term.

Straits Times Index=1,752 (Reached yellowline...sell into strength)

Very much depend on the government budget and Chinese New Year rally.

Petrobras cancels P-61 and P-63 tenders claiming bids were too high

Very negative for Kep Corp and Sembmarine.

Brazil's Petrobras has cancelled tenders for its P-61 and P-63 offshore oil production platforms after deciding that the prices bid on the Papa Terra project were outside its budget parameters.

In a written statement, Petrobras said it considered price proposals for supplying the TLWP P-61 to be too high "given current market conditions."

Petrobras added that alternative development solutions for developing the Papa Terra field will now be studied.

Petrobras and consortium partner Chevron have drawn up plans to develop the heavy oilfield in the Campos basin using a TLWP and an FPSO, handle up to 180,000 barrels per day of crude.
Sources involved in the bidding process related that a communication was received from Petrobras last week stating that bids received for the P-63 have also been disqualified as "too high".

Modec Int'l, Floatec and SBM Offshore had all submitted bids for platofrm P-62. Modec was the leading candidate to supply the TLWP P-61 after offering a price of more than $1.72 billion against FloaTec's second-placed offer of $1.96 billion.

Petrobras has also reacted to the cancellation of the semisubmersible construction contract between Keppel FELS and Scorpion Offshore. The now-canceled semisubmersible was expected to begin a six-year contract with Petrobras in June 2012.

Petrobras said that the cancellation has no bearing on its agreement with Scorpion. Petrobras has requested clarifications from Scorpion and will continue undertaking all of the actions it considers pertinent to have the rigs available to fulfill its business plan.

CITIGROUP=US$3.83 (Target Price US$0)

May be nationalised....

Global stock - Approaching the 8,000 flashpoint

Crucial support at 8,000-8,100 for DJIA. The DJIA fell by as much as 11% from its Jan 07 peak of 9,087pts in the last eight trading days, catching many, including us, by surprise. The index tested the crucial 8,000 support level last night before a rebound kicked in to help the DJIA close just 12pt higher at 8,012.

Wave “5” down leg has kicked in? Failure to hold above the crucial 8,000-8,100 support level would be bad news and would probably confirm our view that the preferred wave count is taking place. This is the wave “5” down leg from the 7 Jan 09 peak. If wave “5” has already started and assuming that wave “5” equals the length of wave “1”, the DJIA could hit 6,600 before bottoming.

Rising volumes not a good sign. Trading volumes for DJIA stocks have been rising in the past 1-2 week, which is not a good sign. Furthermore, the daily chart shows two bearish patterns – a bearish rising wedge and a descending triangle formation. Based on the triangle formation, the DJIA’s eventual target is 6,600, similar to our Elliott Wave projections.

Alternative wave count still possible. Our alternative wave count is still possible if the DJIA can hold above 8,000-8,100. Worst case scenario, we see a double bottom for this alternative wave count. But we think even this would be a challenge given the negative signals that the technical indicators are throwing.

World Index breaking down. The MSCI World Index’s 50-day SMA support line at 220 has just given way. Since mid-07, the index has broken below the 50-day SMA three times, usually followed by a 2-3 week correction phase.

Asian index breaches 50-day SMA. The last time the MSCI Asia ex-Japan Index (MAxJ) broke below its 50-day SMA was in Jun 08. This was followed by a major decline to the Oct 08 low. The MAxJ is likely to at least test its Oct 08 low if this downtrend continues before Asian markets bottom.

STI sell into rebound

Straits Times Index=1,721. Sell into this rebound. SAR resistance at 1,751.

DJ INDU AVERAGE (Broke down Bear Flag. Negative)

DJIA - The breakdown from the Bear Flag formation signal the start of another downleg for Dow Jones. Medium Term technical points towards retest of previous low at 7,197 (11 Oct 2008's Low). Long Term technical points towards 5,000 level.

SGX=$5.02 (Trendline support broken this morning)

Gap at $4.72 to $4.91 may be filled.

NIKKEI 225 INDEX (Also brokedown trendline support)

More downside for Nikkei 225 index. God bless us.

Straits Times Index (Don't try to catch a falling Knife)

There could be rebounds along the way in this downtrend. But why try to
catch a falling knife and goes against the trend? Not worth the risk.

Synear=$0.32 (short terms averages are above the long term averages)

Will Chinese New Year demand pust up Synear sales?

STI has broken below the 1844 level

The STI has failed to maintain above the 1844 level, greatly reducing the odds of the recent rally continuing. The CRB index represents growth and influences STI direction. With the STI tracking the CRB index very closely, we advise investors to keep vigilant watch on the CRB. A decline to 208 on the CRB will likely take the STI lower with it. Support for the STI is at 1718, followed by 1600.


The STI has broken below the 1844 level. This is the market telling us that the recent mini-rally had weak buying backing it. The current market conditions tell us that the STI will most likely range trade between 1844 and 1718, although in this case, a wide trading range between 1916 and 1718 is also acceptable.

The critical numbers, 1916 and 1600 remain in tact. A close above 1916 will take the STI to 2025 and a close below 1600 will take us to the 1473 October 2008 low.

S&P 500 - good support at the 857 level

Last week we wrote that the S&P 500 has to maintain above the 900 level for the rally to continue being viable. This has not occurred and over the past week with the S&P 500 trading below 900. Closing below 900 indicates technical weakness and drastically lowers the odds of a rally.


There is good support at the 857 level and the short term decline of the S&P 500 should slow down there. A close below 857 would tell us that bearish momentum is stronger than expected and would take the S&P 500 to the next key support at 818. 951 and 818 continue to remain critical numbers. A close higher than 951 would indicate a high probability of a rally to at least 1007, while a close below 818 would take us to the November 2008 low of 741. In the mean time, the most probable scenario is for the S&P 500 to range trade between 857 and 918 again.

UOL Group To Make S$1.20/Shr Offer For All United Industrial

UOL Group Ltd. said Wednesday that it will launch a S$1.20-a-share offer for United Industrial Corp. after it increases its stake in the property developer and investor.

In a statement, developer UOL said it will buy 15.86 million United Industrial shares at the same price, increasing its stake to 30.2% and triggering the takeover offer.

Shares of United Industrial, which are suspended from trading, last changed hands at S$1.10. The offer values United Industrial at S$1.65 billion, and the remaining 69.8% stake at S$1.15 billion. UOL Group is making the bid through its unit UOL Equity Investments Pte.Ltd.

The company said if its bid is successful, it will offer to buy shares of United Industrial''s unit Singapore Land Ltd. that United Industrial doesn''t already own for S$3.57 a share, or about S$406 million. United has a 72.4% stake in SingLand. SingLand shares, which are also under trading halt, last changed hands atS$3.42.

HANG SENG INDEX (Broken the trendline support...Bearish)

If Hang Seng gone, no way Straits Times Index can escape.

Epure Int=$0.305 (Take profit at resistance $0.305)

Hard to resist?

Chart for DJ INDU AVERAGE (meeting with the Low trendline support)

Can Dow break below 7000 points again?

Weekly Chart for DBS (looking at $6.67 low)

If DBS at $6.67, then it will be really attractive.

Hourly Chart for CITYDEV=$6.21 (Yellowline now at $6.50)

A short term rebound for City Development?

Chart for NOL=$1.22 (Ascending Triangle pattern)

Is NOL moving up?