Singapore Stock Market Technical Analysis & forecast for 1st October

Posted: September 30, 2015 in Stock Tips

Straits Times Index on Wednesday underwent a volatile session tracking movements in Hong Kong and China as well as the futures market for US benchmarks.

Singapore’s benchmark Straits Times Index opened today at 2,778.59 points, down 0.01 per cent or 2.95 points and ended 4.0 points or 0.14% lower to 2772.36. STI came off from its intra-day peak of 2799.80 and low of 2772.36

Singapore stocks drifted lower at noon, bucking a regional rebound following Tuesday’s rout led by commodity-related companies. It first fell 15 points to an intraday low of 2,772 before rebounding into positive territory in the wake of gains in the Hang Seng and Shanghai Composite and a 140-points or 0.9 per cent rise in the Dow futures that brought hope that Wall St would rally on Wednesday.
LOCAL BOURSE

Singapore Exchange could see wide earnings fluctuations in coming quarters as its derivatives business faces volatile market conditions.
Singapore’s much-weaker August industrial production has tilted the balance to the Monetary Authority of Singapore (MAS) easing its monetary policy when the central bank next meets in October.

Market forecast:

STI is expected to consolidate with positive sentiment. STI has the support level of 2768. STI has its resistance at 2800. If it breaks this level it might go up to 2830. Investor sentiments are cautious over the early rate hike of U.S. by FED. STI in line with the world indices is expected to be positive.

STI COUNTER SPECIFIC NEWS

  • United Overseas Bank (UOB) is rolling out a brand campaign as part of its 80th anniversary celebrations.
  • hares in palm oil producer Golden Agri-Resources are up 6.5% at 33 cents, their highest level in nearly three months.
  • Health Management International (HMI) has appointed Chin Wei Jia as Group Chief Executive Officer.
  • Noble Group shares fell by 15% on global commodity woes.

GLOBAL FACTORS AND WORLD INDICES:

  • Hong Kong stocks bounced sharply on Wednesday from the previous session’s two-year lows, wrapping up a tumultuous quarter in which the benchmark Hang Seng Index plunged more than 20 per cent. At market close, the Hang Seng was up 1.4 per cent, to 20,846.30, while the China Enterprises Index gained 1.9 per cent, to 9,405.50 points.
  • China’s stocks rose, paring the biggest quarterly loss since 2008, as the government struggled to halt a US$5 trillion rout and the world’s second-largest economy showed signs of a sharper slowdown.
  • European stocks advanced, rebounding from Tuesday’s decline, as investors paused to assess value in what is heading for the worst quarter in four years. The Stoxx Europe 600 Index jumped 1.8 per cent to 345.43 at 8:07 am in London.
  • Nikkei share average gained 2.7 per cent to 17,388.15, but ended the quarter down 14.1 per cent, making it one of the worst performers among developed markets.
  • The S&P/ASX 200 index rose 2.1 per cent to close at 5,021.6, its biggest one-day gain since Aug 25 but insufficient to make up for the previous day’s fall of nearly 4 per cent. For the quarter ended Sept 30, the benchmark was down 8.0 per cent, its biggest three-month drop since the September quarter of 2011.
  • Asian stocks recovered slightly Wednesday from a mass sell-off in the previous session, with emerging currencies ending a tough quarter on a high but warned of further volatility ahead..
  • The global banking industry, which earned a record US$1 trillion last year thanks to Chinese lenders, will likely have revenue growth continue at a pace of about 3 per cent annually over the next few years – a growth closely aligned to global gross domestic product.
  • Asian currencies from the South Korean won to Malaysian ringgit picked up against the dollar Wednesday with confidence returning to trading floors as regional equity markets rose after a global rout.
  • Crude oil futures fell in early Asian trade on Wednesday after US inventories showed a weekly buildup that far exceeded analyst expectations.
  • Financial markets face a higher risk of liquidity squeezes in a sell-off due to the effects of the long period of low interest rates, the International Monetary Fund.
  • Gold dropped for a fourth day after consumer confidence in the U.S. unexpectedly rose in September, building the case for an interest rate increase this year.
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