Singapore Stock Exchange; Technical Review

Posted: July 8, 2014 in Stock Tips

Market Review for STI:
Share prices opened lower with Straits Time Index down 2.98 points to 3288.59. Asian stocks were subdued on Tuesday as Wall Street turned cautious ahead of the corporate reporting season and earnings guidance from regional tech heavyweight Samsung came in well short of forecasts. The ratings agency expects that a surge in lending by Singapore banks in recent years will raise the risk of problem loans when interest rates rise. The red candlestick pattern is formed for the day with a lower shadow and very small upper shadow. The day trend in STI is up from the last week. Prices are above the 20 days EMA.

STI Day Performance
Open 3288.590
High 3289.560
Low 3278.490
Close 3283.340
Change(Points) -8.230
% Change -0.25
Volume 1508.5M
Rise 168
Fall 216
Unch 423

Market forecast for STI:
With the positive movement in Asian stocks we may expect that the prices will still move up and can touch the level of 3300.

STI LEVELS
Support 1 Support 2 Support 3 Resistance 1 Resistance 2 Resistance 3
3272 3260 3255 3292 3300 3320

Technical indicators:
The RSI is above the centre line @54.555 and CCI is @65.310.MACD is @1.240.

Top Gainers Top Losers
Scrip Name CMP %change Scrip Name CMP %change
Jardine C&C 46.45 2.04 Ascendas Reit 2.3 -0.86
HongkongLand USD 6.65 0.76 ST Engineering 3.81 -0.78
Noble 1.4 0.36 CityDev 10.15 -0.69
Wilmar Intl 3.22 0.31 JSH 500 USD 36.8 -0.57
SIA Engineering 5.07 0.2 DBS 17.07 -0.52

Important Factor for today:-

  • Singapore’s banking sector has a negative impact over the next 12-18 months since July 2013. This is due to rise in interest rates resulting increase in loan provision as US Fed’s expected to raise policy rates and as asset price are likely to fall.
  • STI’s 30 blue chip stocks have a combined market capitalisation greater than all other shares and trust listed on the SGX. STI gained 2.8% in price with dividend activity boosting that return to 4.4%, this added to 12 month price gain of 3.3% and STI for 6.6%. Out of 30 stocks, 18 stocks generated price gain in H1 2014.
  • Singapore state investor Temasek Holdings Pte Ltd said it would continue to invest in Chinese financial institutions and it was comfortable with its holdings in Chinese banks.
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