Archive for March, 2015

Market Review for STI: Singapore shares overcame an overnight decline in the US markets to post a modest gain as the Straits Times Index edged up 0.02 per cent, or 0.75 point, to 3,414.01.Asian stocks climbed, while the U.S. dollar regained some momentum on signs U.S. inflation is perking up.STI
STI Day Performance
Open: 413.72
High: 3422.72
Low: 3404.63
Close: 3419.02
Change(Points): +5.76
% Change: 0.17%
Volume: 1219.0M
Rise: 223
Fall: 148
Unch: 408
Market forecast for STI: We may expect bullish trend in next trading session.
Straits Time Levels
Support 1: 3375
Support 2: 3360
Support 3: 3325
Resistance 1: 3440
Resistance 2: 3456
Resistance 3: 3480
Technical Indicators: RSI is at 56 and CCI is at 64.
Top Losers: capitaland.sg, genting sing.sg, hongkongland usd.sg, ascendas reit.sg, thaibev.sg
Top Gainers: keppel corp.sg, global logistic.sg, hph trust usd.sg, singtel.sg, uob.sg, keppel corp.sg
Important Factors for today:-

  • Shares of SIIC Environment Holdings rose 6.7 per cent on active trading after the water treatment company announced an acquisition of a China-based business in the same industry.
  • Consumer confidence here rose in March, mainly driven by greater confidence about personal financial situations and also about the outlook for the Singapore economy following Budget 2015
  • Crude futures dipped slightly as ballooning US storage volumes continued to pressure prices although relatively healthy demand figures from Europe supported prices.
  • Comments from the US Federal Reserve’s vice chairman suggesting interest rates would rise more slowly than expected put further downward pressure on the dollar.
  • THE local bond market continues to sizzle even as interest rates rise to multi-year highs. In the three weeks of March, over S$2.4 billion was raised from 16 issues against S$1.6 billion and 13 deals in the same period last year.
  • ValueMax Group has decided to expand its business to include unsecured moneylending.
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GOLD
The gold markets initially fell during the course of the session on yesterday, but found enough support at the $1180 level to turn things back around and form a hammer. COMEXWith that, the market looks as if it’s ready to head towards the $1200 level which is a resistance and it may extend towards the $1220 level. On the other hand, if we break down below the $1180 level, the market should then head back and try to fill the gap that formed several sessions ago.
SILVER
Silver markets went back and forth during the session on yesterday, as we continued to try to break above the $17 level. We believe that a move above the $17 level will head this market to the $17.50 level. As of now, pullback should offer buying opportunities as there should be plenty of support after the bullish move that we saw on Friday. We believe that market would be quite volatile. We believe that the $15 level below is the absolute bottom of the market.
CRUDE
The light sweet crude markets initially fell during the course of the session on yesterday, but found enough support just above the $45 level to turn things back around and formed a hammer. This hammer suggests that we are going to go higher, perhaps breaking all the way to the $50 level over the course of the next several sessions. However, before we start buying, we have to wait until we get the market moving above the $48 level. We expect plenty of volatility, with more of a downward bias over the longer term.

EUR/USD
The EURUSD initially fell during the session on yesterday, but then went higher later in the day in order to challenge the 1.0950 region. The 1.10 level is resistance and in the past it was both resistance and support. Because of this, we are looking for some type of resistive candle in that general vicinity so that we can start selling as we expect a long-term downtrend. As of now, we are on the sidelines but it is marketplace that should offer opportunities soon.forex
GBP/USD
The GBPUSD initially fell during the course of the session on yesterday, but found enough support at the 1.48 level to turn things back around and form a hammer. Because of this, looks like the British pound will test the 1.50 level, but that could be a bit of resistance area. Market looks as if it is going to try to break out to the upside, but there is still a significant cluster of resistance all the way to the 1.52 level. If it breaks 1.48 level then we can expect bearish pressure in the market till 1.45 level. On the other hand, if we break above the 1.52b level then we may head to the 1.55 level next.
AUD/USD
The AUDUSD initially fell during the session on yesterday, but turned back around and went much higher. However, we feel there is much of resistance at least to the 0.80 level. Because of this, we are not willing to buy this market and we are waiting to see if we can get some type of sell signal in order to continue the longer-term trend to the downside and aim for the 0.76 level next.
USD/JPY
The USDJPY went back and forth during the course of the session on yesterday, as the 120 level offered resistance. However, we believe that this market will find enough buyers to push this particular market higher, and with this if we can break above the top of the range for the Monday session we are buyers. We feel that it can go up till 122 level and then to the 125 level. We do not see longer term selling opportunities as US dollar is the favored currency in the world right now although we also recognize that it has started to pull back a little bit.
NZD/USD
The NZDUSD broke higher during the session on yesterday, clearing the 0.78 level. However, we see that there is a significant amount of resistance at the 0.77 level, so we are not willing to start buying. The Royal Bank of New Zealand needs to see the New Zealand dollar lose value going forward. In the meantime, we will sit on the sidelines as we are waiting for some type of clear signal in order to place any type of trade.

Weekly wrap of STI: Starting of the week was sideway .stocks defied the odds, trading higher even as most Asian stocks dropped, following declines in US shares, as materials and technology companies led losses and Markets waiting for the US Federal Reserve’s policy statement due later in the session for clues to when the Fed will hike interest rates. Federal Reserve said data suggest economic growth has moderated and officials indicated interest rates will rise at a slower pace than previously estimated.SGX
Weekly Technical view on STI
Support 1: 3339
Support 2: 3325
Support 3: 3200
Resistance 1: 3456
Resistance 2: 3480
Resistance 3: 3495
Market Forecast for week ahead: The trend of market is expected to be bullish for next week. Currently we have seen unusual volatility in markets due to Federal Reserve meeting. We may see bullish really in next week trading session because it has taken rebound from 3374 and we may expect that it will reach up to 3456.STI
STRAIT TIMES WEEKLY WRAP
OPEN:3361.38
HIGH: 3417.45
LOW: 3356.66
CLOSE: 3412.44
CHANGE (In Points): +49.67
% CHANGE: 0.14%
Technical Indicators: RSI is at 57 and CCI is at 54.
Macroeconomic factors:

  • Oil touched its lowest level since 2009, dragging Asian energy shares down amid increased projections for US production. The dollar weakened from its strongest in more than a decade to major peers ahead of this week’s Federal Reserve meeting.
  • Singapore’s anti-trust regulator blocked a takeover for the first time when it provisionally ruled last week that Malaysian IHH Healthcare Bhd’s planned purchase of a local unit of India’s Fortis Healthcare would lessen competition.
  • SGX on issued a trade with caution regarding Civmec Limited, an investment holding company that provides heavy engineering and construction services to resources and infrastructure sectors in Australia.
  • Bank of Singapore said that rate hike by the Fed in September now looks more probable, with the US central bank pushing back expectations for the path of rate increases over the coming couple of years.
  • Blumont Group is planning a rights cum warrants issue to raise about $27 million in net proceeds if the rights shares are fully subscribed.
  • Oil resumed its slump after rallying from the lowest price in six years as focus returned to record supply in the US, the world’s biggest consumer.
  • Gold rose to its highest in nearly two weeks on after the U.S. Federal Reserve signalled a slower pace of interest rate hike and gave a cautious outlook for the U.S. economy.
  • The Federal Reserve opened the door to the first interest-rate increase in almost a decade, while also indicating it will go slowly once it gets started.
  • Singapore-listed Noble Group’s 30 per cent share-slump over the past month has thrust it on to the radar screens of Asian companies that want a bigger clout in global commodities trading.
  • BLACKROCK Inc, an associate of Keppel Corp, made a series of dealings on Keppel Land shares on Thursday.It purchased 7,000 shares at S$4.55 apiece and sold a total of 48,100 shares at prices ranging from S$4.53 to S$4.55 per share.
  • Singapore’s financial regulator will work with commodity exchanges, investors and producers to support the development of the city-state as a trading center, including the expansion of clearing houses in Asia.

Weekly wrap of KLCI: The week started with gap down opening. The FBM KLCI index lost 5.48 points or 0.30% on Friday. The Finance Index fell 0.40% to 15968.45 points, the Properties Index up 0.00% to 1303.7 points and the Plantation Index down 0.11% to 7802.05 points. The market traded within a range of 8.16 points between an intra-day high of 1806.90 and a low of 1798.74 during the session.
The KLCI dropped 5.48 points to end at 1803.65 points, taking cue from lower overnight closing in Wall Street. The performance of our benchmark index was dragged down by selling in banking counters.Bursa Malaysia
FBM KLCI Week’s Performance
Open: 1803.56
High: 1806.90
Low: 1798.74
Close: 1803.65
Change (Points): -18
% Change: -1.01
Market Forecast for week ahead: As per the technicality of the KLCI Index, it is expected to go up till 1820. An increase in the crude prices will lead our index to go further up, possibly till 1840 level.
Technical indicators: RSI for this week is 50.537 with CCI at 29.138. Besides, difference line of MACD -5.540 and crossed its signal line 11.385.
Weekly Technical view on KLCI
Support 1: 1780
Support 2: 1763
Support 3: 1732
Resistance 1: 1830
Resistance 2: 1860
Resistance 3: 1885
ECONOMIC FACTORS:

  • The ringgit is expected to to depreciate further to 3.95 against the dollar by September, before ending the year at RM3.82, boosting exports and trade surplus.
  • Fitch Ratings’ likely downgrade of Malaysia’s rating does not reflect the country’s true economic fundamentals, says Minister in the Prime Minister’s Department.
  • Foreign investors remain optimistic about the country’s economic and business prospects despite Fitch Ratings’ possible downgrade of Malaysia’s sovereign rating.
  • Kian Joo Can Factory Bhd and Aspire Insight Sdn Bhd have agreed to extend the deadline for the fulfillment of all conditions in regards to Kian Joo’s plan to dispose of entire business to Aspire Insight.
  • Crest Builder Holdings Bhd’s subsidiary Crest Builder Sdn Bhd has clinched a RM197.82 million contract from UDA Holdings Bhd for the construction of super-structure works of a 30-storey serviced apartments in Kuala Lumpur.
  • Malaysia Airports Holdings Bhd (MAHB) has signed a long-term concession agreement with National Aerospace and Defence Industries to support the government’s initiative to enhance the development of aerospace industry in Malaysia.
  • Petron Malaysia is expected to invest over US$1 billion (RM3.7 billion) over the next few years in the country.
  • Property developer KSL Holdings Bhd has set a dividend policy of paying a minimum of 40% of annual core net profit from operations, excluding fair value gains, to shareholders with effect from the financial year ending Dec 31, 2015.
  • Asia Brands Bhd has proposed to raise RM100 million through the issuance of 15-year Islamic notes. In a filing with Bursa Malaysia, it said proceeds will be used for syariah-compliant purposes only, including financing investments, capital expenditure, working capital and other corporate purposes.
  • IJM Corp Bhd has appointed Datuk Soam Heng Choon as its CEO and managing director effective April 6, 2015, replacing current CEO and managing director.
  • A joint initiative between the Construction Industry Development Board (CIDB) and Germany-based Bayer MaterialScience for affordable housing solutions will see lower prices for properties.

EUR/USD
The EURUSD broke higher during the course of the day on yesterday, testing the 1.10 level after the Federal Reserve suggested that perhaps the interest rates in the United States will remain low for a longer amount of time than anticipated. Because of this, we believe that the market will test the 1.10 level again, but we can not forget this fact that there are major issues in the European Union right now. With that, we are a bit hesitant to get involved until we get a clearer signal one way or the other. As of now,it’s better to stay on the sidelines.
GBP/USD
The GBPUSD broke higher during the course of the session after initially falling on yesterday, as we sliced through the 1.50 level. In fact, the surge was massive and as a result we anticipate quite a bit of volatility in this market. However, as the US closes, we are dropping back below the 1.50 level, so right now it looks like the market is still trying to figure out what the US dollar is getting ready to do. With that, we recommend staying out of this market at the moment, as the volatility is too much.
AUD/USD
The AUDUSD broke higher during the course of the session on yesterday, testing the 0.79 level. However, we found enough resistance in that general vicinity to withstand the bullish pressure. Alternately, if we get some type of resistive candle in this general vicinity that we are willing to sell. However, we do not have that as of now and we do recognize that the 0.80 level above is a bit of a ceiling, so we are waiting to see whether or not we get a sell signal again, and as a result will remain patient.
USD/JPY
The USDJPY fell hard during the course of the day on yesterday as the Federal Reserve announced its monetary policy, suggesting that perhaps they will have to be patient for longer than anticipated about rate increases. With that, we think that there is still probably an uptrend in a fact, but we may have to be patient and wait for a supportive candle in order to start buying.
NZD/USD
The NZDUSD broke higher during the course of the day on yesterday, breaking above the 0.75 level at one point. Because of this, we need to wait to see whether or not this area holds as resistance, and gives us a nice selling opportunity. As of now, we do not have the right resistive candle, so at this point of time we believe that this market will continue to be very choppy and volatile. We have no interest in buying, but certainly can’t sell. We will let the market come down for a couple of days before placing trades.

Market Review for STI: The Straits Times Index (STI) opened lower at 3,361, down 8.95 points or 0.27 per cent, weighed down by cautious sentiments as commodity prices fall and nervousness increased ahead of a Federal Reserve policy state.Asian stocks were mixed and the dollar marked time on Wednesday, with markets waiting for the US Federal Reserve’s policy statement due later in the session for clues to when the Fed will hike interest rates.STI Chart
STI Day Performance
Open: 3357.97
High: 3373.57
Low: 3356.66
Close: 3361.75
Change(Points): -8.20
% Change: -0.24%
Volume: 961.3M
Rise: 126
Fall: 278
Unch: 377
Market forecast for STI: We may expect bearish rally in next trading session.
Straits Time Levels
Support 1: 3365
Support 2: 3345
Support 3: 3300
Resistance 1: 3400
Resistance 2: 3425
Resistance 3: 3440
Technical Indicators: RSI is at 40 and CCI is at -132.
Top Gainers: sia.sg, sgx.sg, golden agri-res.sg, jsh usd.sg, dbs.sg, global logistic.sg
Top Losers: noble.sg, capitamall trust.sg, thaibev.sg, starhub.sg, hph trust usd.sg
Important Factor for today:-

  • Sgx on issued a trade with caution regarding Civmec Limited, an investment holding company that provides heavy engineering and construction services to resources and infrastructure sectors in Australia.
  • Tata Consultancy Services, a leading IT services, consulting and business solutions organization, announced that it has expanded its presence in Singapore with the opening of the new 1,000-person TCS Singapore Banking and Financial Services (BFS) Centre.\
  • XMH Holdings, the diesel engine provider in the marine and industrial sectors, posted earnings of $4.8 million that for the nine months ended Jan (9M15). This was 38.8% lower than the $7.9 million posted a year earlier
  • Concern over a US interest rate hike kept sentiment in check at some of Asia’s biggest firms, as optimism about the outlook for business over the next six months was near steady in the first quarter, a Thomson Reuters/INSEAD survey showed.
  • SGX this morning issued a “trade with caution” regarding Civmec Limited, an investment holding company that provides heavy engineering and construction services to resources and infrastructure sectors in Australia.
  • US Treasury Secretary Jack Lew said on Tuesday China will table an offer within days or weeks on which industries would remain protected from foreign investment under a bilateral investment treaty the two nations are negotiating.
  • Oil extended losses to a seventh day, with prices heading back into a bear market, before US government data projected to show crude stockpiles rose to a fresh record. The dollar weakened for a third day and emerging-market shares climbed before the Federal Reserve reports on policy.

Market Review for STI: Singapore share prices opened lower with the Straits Times Index (STI) down 0.75 points to 3,362.02, tracing losses in the US markets. Singapore stocks hung on to their gains at noon after opening lower because Singapore-listed companies received an increase of 7.1 per cent in the median of the average director’s fee – or S$60,000 per annum – in the financial year 2013/2014, compared to S$56,000 in the previous financial year.STI Chart
STI Day Performance
Open: 3361.38
High: 3387.36
Low: 3358.03
Close: 3376.04
Change(Points): +13.27
% Change: 0.40%
Volume: 1050.5M
Rise: 143
Fall: 260
Unch; 381
Market forecast for STI: After one week STI was positive now we are expecting STI will be positive in next trading session.
STRAITS TIME  LEVELS
Support 1: 3340
Support 2: 3320
Support 3: 3300
Resistance 1: 3400
Resistance 2: 3420
Resistance 3: 3440
Technical Indicators: RSI is at 43 and CCI is at -134.
Top Gainers: sia.sg, thaibev.sg, jardine c&c.sg, jsh usd.sg, golden agri-res.sg
Top Losers: noble.sg, hongkongland usd.sg, sembcorp marine.sg, starhub.sg, sgx.sg
Important Factor for today:-

  • The Monetary Authority of Singapore (MAS) said, last tuesday, it was reviewing and might delay the scheduled 1 June 2015 rollout of tighter macro-prudential measures to limit consumer debt.
  • China’s fiscal income rose just 3.2 per cent between January and February compared with the same period a year ago,well below an 8.6 per cent gain seen in the same period of 2014.
  • Oil touched its lowest level since 2009, dragging Asian energy shares down amid increased projections for US production. The dollar weakened from its strongest in more than a decade to major peers ahead of this week’s Federal Reserve meeting.
  • Media group Singapore Press Holdings (SPH) has notified the Singapore Exchange of its move to buy a 20 per cent stake in a local start-up that offers quick and convenient access to curated data about companies and the people who run or own them.
  • Singapore’s anti-trust regulator blocked a takeover for the first time when it provisionally ruled last week that Malaysian IHH Healthcare Bhd’s planned purchase of a local unit of India’s Fortis Healthcare would lessen competition.