STI Technical Analysis and Forecast for Next Week

Posted: April 24, 2015 in Stock Tips

Weekly wrap of STI: In this week STI did not performed well STI retreated following a selloff in US markets last Friday. How they fare for the rest of the session could hinge on the reaction of stocks in China to a decision the Chinese central bank to ease bank lending restrictions then shares settled mostly higher as investor sentiment got a boost from strong rebounds in Hong Kong and China following a pullback in the previous session. Shares pulled back as traders and investors lightened positions after recent gains to await fresh leads, including more earnings announcements. Gains in most Asian markets kept Singapore shares higher, with investor sentiment underpinned by hopes that China will introduce more stimulus measures after a closely-watched private survey pointed to continued weakness in the country’s manufacturing sector and shares were mostly higher at midday but struggled to hold on to gains as investors mulled over losses in Hong Kong and China stocks, while waiting for more companies to announce their March-quarter results.sti chart
STRAIT TIMES WEEKLY WRAP
OPEN: 3507.88
HIGH: 3523.08
LOW: 3497.083
CLOSE: 3513
CHANGE (In Points): +10.25
% CHANGE: 0.29%
Market Forecast for week ahead: The trend of market is expected to be bullish for next week .Currently it has been seen that there is unusual volatility in markets due to oil prices crisis. And from technical point of view STI making rounding bottom in daily chart so we are expecting it will move up.
Weekly Technical view on STI
Support 1: 3475
Support 2:b 3441
Support 3: 3352
Resistance 1: 3529
Resistance 2: 3550
Resistance 3: 3550
Technical Indicators: RSI is at 65 and CCI is at 142
Macroeconomic factors:

  • Japfa’s Indonesian unit PT Japfa Comfeed incurred a net loss in 1Q2015, an outcome that the Singapore-headquartered company said will have “a substantial adverse” impact on its own results for the quarter.
  • China’s stock-index futures in Singapore erased losses from late trading Friday as a move by the central bank to cut reserve ratios overshadowed new rules on using leverage for stock trading.
  • CapitaMall Trust’s 1Q2015 results marked “a good start” to 2015, and the REIT is likely to maintain a moderate pace of rental reversion for leases that are expiring this year.
  • The first three months of every year is typically a strong period for Singapore banks following a seasonally weak fourth quarter, but loan growth in 1Q2015 could have been much weaker than what even the lenders themselves had expected.
  • The first three months of every year is typically a strong period for Singapore banks following a seasonally weak fourth quarter, but loan growth in 1Q2015 could have been much weaker than what even the lenders themselves had expected.
  • Standard Chartered has a strong business case to move its headquarters from London to Singapore and save millions in taxes as, unlike HSBC , it doesn’t have a banking network in the UK.
  • Noble Group has denied media reports that it repeatedly avoided questions from minority shareholders during its AGM.
  • Singapore’s annual industrial production is expected to have declined in March, a Reuters poll showed, though output is seen rising month-on-month with some optimism that signs of improving exports will underpin a struggling manufacturing sector.
  • Singapore Reinsurance Corp’s net profit for the 1QFY15 ended March declined 26.3% to $3.6 million from $4.9 million last year.
  • Q & M Dental Group (Singapore) is exploring the possible spin-off and listing of its subsidiary, Q & M Aidite International, on another stock exchange.
  • Singapore’s factory output fell for the second straight month in March, with production in most manufacturing clusters lower.
  • YuuZoo Corp has formed an equal joint venture with Africa’s largest television network to launch a virtual mall targeted at consumers in Nigeria and beyond.
  • Private residential prices in Singapore fell in 1Q2015 for the sixth straight quarter, a sign that potential home buyers and investors were still deterred by various measures put in place by the government to rein in property prices and discourage excessive borrowing.
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