Wednesday, April 8, 2009

Buy HK Land, United Fiber, Sell SPC

United Fiber System (UFS SP; S$0.025) – BUY

• Appears to be forming a rounded bottom. Now that it is trading above its 30-day SMA, the chances of its climbing further have increased.

• MACD has just moved into positive territory suggesting that the buying momentum is still rising rising. However, its RSI is flat. Mixed indicators indicate that the stock is still in consolidation.

• Aggressive investors should only buy on weakness. Cut losses if the S$0.015 support gives way. Resistance is seen at S$0.04 and S$0.055.

United Fiber System is a group with significant regional presence and with synergistic operations in forestry, pulp production and construction.

Singapore Petroleum Corp (SPC SP; S$3.02) – SELL

• The stock has continued to climb upwards within its uptrend channel that begun since October last year. It has tested this channel’s resistance at S$3.22 recently but could not break it – the first sign of weakness.

• MACD is still marginally positive but RSI has hooked downwards from an overbought level.

• Expect more downside from here as selling accelerates. Any rebound back up to test the channel resistance is a chance to sell. Support is seen at S$2.75 and S$2.63.

SPC’s business activities include oil and gas exploration and production, gas pipelines, refining, terminalling and distribution, marketing, trading and sale of refined products. In the Singapore retail market, SPC continues to strengthen its brand and provide a comprehensive value proposition of quality products and excellent service.

Hongkong Land Holdings (HKL SP; US$2.36) – BUY

• The stock broke out of its short term downtrend resistance and rallied to a high of US$2.55. Since then, it has been under some selling pressure probably due to profit taking. Resistance is seen at US$2.58 and US$2.70.

• Technical indicators are still positive but are showing signs of lethargy. Daily RSI has hooked down.

• However, since the longer term charts are still positive, we think that the stock still warrants a buy. However, it may be better to buy nearer to support levels - US$2.27 and US$2.15 (its 30-day SMA). Investors who bought earlier may want to lock in some profits now.

Hongkong Land Holdings Limited is incorporated in Bermuda. Its primary listing is in London, and its shares are also listed in Bermuda and Singapore. The Group’s assets and investments are managed from Hong Kong by Hongkong Land Limited. Hongkong Land is a member of the Jardine Matheson Group.

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