16/06/2009 Market Update

---------+--------------+--------------+--------------+--------------|

| | Close | Change | Low | High |
|---------+--------------+--------------+--------------+--------------|
|STI | 2,288 | -28 | 2,264 | 2,302 |
|---------+--------------+--------------+--------------+--------------|


|---------------+-------------------+-------------------|
| | Shares | Value |
|---------------+-------------------+-------------------|
|Volume Traded | 2.23 billion | $1.77 billion |
|---------------+-------------------+-------------------|

We saw slightly heavier trading activity today. And the plunge wasn't that

bad too. As expected, bargain hunters did come in to support the market

when the STI trended nearer towards support region. It was not like a total

breakdown. Only a few counters such as City Dev, UOB, Kep Corp and SGX did

badly, while SingTel defied gravity and save the STI from a bloodbath by

gaining $0.12.

Our market created a gap at 2,303 - 2,316. Should the US manage a rebound

tonight. Our market can possibly cover back this gap tomorrow. Otherwise

judging from current sentiment, I think it is quite likely that the STI can

hit 2,180 or even 2,100 region on a "worst" case scenario before resuming

the general uptrend. Current support region at 2,250 regio is still

holding. But if you have bought some shares at this level, it is better

that we try to buy at other strategic levels, unless we are dead sure that

the market will recover from here onwards. Therefore, we will continue to

use 2,180 and 2,100 as the strategic entry points. For investors with zero

holdings, consider to nibble a little around 2,250 region because I cannot

promise you that the market will surely drop lower for you to buy cheaper

ok?

It is also worthwhile to note that the commodities stocks suddenly pare

losses considerably towards the end of the day. I subsequently found out

that it's because the USD is weakening again. This is exactly what I was

trying to say yesterday, just that I seriously didn't expect the USD to

weaken so quickly again. I am no expert in diagnosing the health of the USD

in the short-term. I just like to caution the traders who are interested to

trade the commodities counters not to be over zealous, because (1) the

trading sentiment is not there, (2) we all think the USD should hold some

strength for awhile and, (3) the correction for most commodities counters

seems a tad too shallow to me.

NOL:

It will go XR tomorrow. Whoever are still holding on to it wil be entitled

to the 3-for-4 rights share issue