Weekly Technical view on STI 15th-19th Dec 2014

Posted: December 19, 2014 in Uncategorized

Weekly wrap of STI:
STI gave a gap down opening for the week by losing 16.7 points to 3312.48. 2nd day of week STI broke its record it was 70 point downs.STI Then gave good opening and filled its previous gap at 3201. Oil prices sank further to new multi-year lows; sinks deeper to 7-year lows in Asian trade, Crude prices have plunged roughly 50 per cent since June, weighed down by plentiful supplies, the stronger dollar and weak demand arising from the struggling global economy. Federal Reserve indicated interest rates would not be hiked until the middle of next year. Wall Street has best 2-day gain since 2011 on Fed optimism about the US economy. Equities rally followed the Fed’s upbeat assessment of the U.S. economy on Wednesday and a commitment to take a patient approach toward raising interest rates. Closing for the week was observed at 3279.53. With a change of points. Get Signals
Strait Times Weekly Wrap
Open: 3312.48        High: 3314.3       Low: 3200.63        Close: 3279.53
Change (in Points): -44.6 %              Change: -1.35%
Market Forecast for week ahead:
The trend of market is expected to be bearish for next week. Currently we have seen unusual volatility in markets due to oil prices crisis and global economic tensions. But the Federal Reserve has decided that not to raise interest rate so it may be good for all Asian market. We may see bullish really in next week trading session. STI may trade in the range of 3220-3300.
Technical Indicators:
RSI is above the centre line which is supporting the bearish trend for the week at 49.23 and CCI is also supportive and at the level of 51.3.
Weekly Technical view on STI
Support 1: 3240           Support 2: 3220             Support 3: 3200
Resistance 1: 3340     Resistance 2: 3360      Resistance 3: 3385
Macroeconomic factors:

  • Singapore’s non-oil domestic exports probably grew in November from a year earlier, when sales of pharmaceuticals were poor, with the comparison against a low base helping shipments recover from October’s contraction.
  • Lower oil price could boost demand in Asia in 2015, with spot interest for diesel, Asia’s most widely used fuel, picking up in countries like Vietnam, Philippines and Indonesia.
  • Asian stocks rose before a Federal Reserve policy decision as gains in energy and utility shares
  • A subsidiary of The Straits Trading Company is proposing to acquire a retail development known as Times Midtown in Chongqing, China for approximately 668.4 million yuan (S$141.65 million).
  • Japan’s exports rose 4.9 per cent in November from a year earlier, Ministry of Finance data showed on Wednesday, rising for a third straight month in a sign of a gradual pick-up in global demand .
  • Singapore’s non-oil domestic exports (NODX) grew 1.6 per cent in November from a year earlier, as a jump in pharmaceuticals exports outweighed the fall in electronic shipments, figures by trade agency IE Singapore showed on Wednesday.
  • Market cap of 23 Offshore Marine firms falls 15.7% in a month amid oil rout .Offshore support services firms listed in Singapore have seen their returns decline by more than one-tenth over the year, in line with falling oil prices, with some of the larger companies among these losing more than half of their returns during the same period.
  • Singapore’s listed companies may miss critical timelines in adhering to the country’s Code of Corporate Governance, particularly in the area of board independence, at the current rate of progress.

Sector Allocation Chart by VOLUME

Sector Volume Values($) Rises Falls Unchanged
Properties 155,752,000 223,687,061 22 35 26
Multi-Industry 16,930,000 86,848,875 7 5 5
Construction 47,045,000 6,250,244 11 11 19
Commerce 91,959,000 63,963,079 21 21 57
Hotels/Restaurants 1,517,000 903,585 2 3 12
Transport/Storage/Communications 118,689,340 225,807,296 16 17 17
Finance 23,452,640 227,665,551 13 8 25
Manufacturing 183,576,250 114,458,769 63 48 143
Services 534,528,820 174,426,224 57 24 77
Agriculture 84,532,011 37,973,080 2 4 3
Mining 26,601,000 7,530,358 7 3 3
Electricity/Gas/Water 1,132,000 626,805 1 1 0
Shares in Foreign Currencies 19,627,530 56,820,708 28 10 112
Total 1,305,342,591 1,226,961,635 250 190 499
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