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Noble Group managed to sell its US Energy unit at US$ 1bn
It has also helped to explain the tremendous rally of Noble’s share price, which has surged more than 26% over last week alone. Market Analyst CMC Markets Singapore |
The recent small mid cap seems to be as hot as the China property market.
For example, Geo Energy Resources has risen almost 90% from $0.090 on 3 Aug to $0.170 last Fri. Some clients who do not typically trade are starting to pile into the market. They are buying small cap or penny stocks (which have already surged a lot) for the hope of selling them at higher prices.
SDJ coal mine of Geo Energy Resources. Photo: CompanyWith reference to my write-up on 23 Sep 2016 (see HERE), I wrote that I continued to be cautious on the general market, while remain positive on selective stocks. Since 23 Sep, I have taken profit and reduced my allocation from around 54- 55% invested in the market to around 24% as on 7 Oct 2016.
I reiterate my cautious stance in the general market while remain ready to accumulate selective stocks on weakness.
-- Ernest Lim, CFA, CA Singapore
