Friday, January 30, 2015

Andy Yew Live interview on 938Live

For some who have missed the live session, here are the contents that we talked about just now

- The stock market is faring rather well today... why are investors picking up stocks again?
We see that in the morning session STI was up 5 points to 3424,Singapore market was strong in the morning session following the Late Rally last night in the US market as the oil stock rebound from the low. 

Market remain flat as investors are waiting for the US GDP number tonight, ahead the GDP number, we also see that the US dollar is moving higher. 

Currently on the technical chart STI is still strong above the support level of 3400 points, we might see profit taking in the market if STI falls below 3400

Market Action Today
Investors is are picking up Smrt today, as SMRT hit the headline news of making a 58% jump in their net profit. 

On the other side, Keppel corp also seems to be one of the stocks that investors are looking into, as Keppel corp is now trading 21% discount from its high in sep 2014, furthermore Oil price is now at $44 it is half price from where is was in 3 months ago, the lowest we expect it to go is $35, we are now at the lower Range

Is there any stock we are watching?
We are looking at Riverstone, a Malaysia  healthcare and cleanroom Glove manufacturing company that is listed in Singapore exchange. Since 2013, the stock price has consistently outperforming the STI and many other stocks in Singapore.

One of the reason of such growth is for Riverstone is that Riverstone has benefited on the increase in the global  Glove demand,  the global demand for glove is increasing by the rate of 8-10% yearly over the past few years,  and in last quarter  of 2014 we see that US dollar strengthen strongly against  Malaysia ringgit. Riverstone is a key beneficiary of USD STRENGTH  as 70-80% of its revenue and 40-50% of its cost of sales  are denominated in USD. This translates into positive net exposure of 3-6% for every  10% movement in USD against Malaysian ringgit.

Riverstone 4th quarter result should be announced End February, we expect the USD move will be one of the catalyst of the strong result.