Archive for October, 2015

STI MARKET REVIEW :
Singapore benchmark Straits Times Index opened higher on Tuesday, gaining 32.50 points or 1.14 per cent to 2883.75 and ended 46.20 points or 1.62 % higher to 2897.41. STI came off from its intra-day peak of 2899.06 and low of 2876.12.
Singapore stocks are helped by decreasing expectations of an rate hike rise later this month from the US Federal Reserve, and a strong overnight lead from US markets. The conclusion to an historic trade agreement which includes Singapore adds to the positive backdrop for the day’s trading.
LOCAL BOURSE
Singapore boasts of having the highest gross per capita financial assets in the region last year, beating Japan, Taiwan and India by quite a fair margin. Singapore’s gross per capita financial assets had by the end of 2014 risen to around 106,620 euros (S$170,000), more than 10 times as high as in China and more than 100 times as high as in India.
Market forecast:

STI is expected to be bullish in next trading sessions. STI has the support level of 2778. STI has its resistance at 2902. If it breaks this level it might go up to 28947. The bullish trend can be seen due to diminishing expectations of an interest-rate rise later this month from the US Federal Reserve.

STI COUNTER SPECIFIC NEWS

  • ASCENDAS Reit (A-Reit) said on Monday it would issue S$300 million worth of subordinated perpetual securities that pay a distribution at the rate of 4.75 per cent.
  • Local telco Singtel has inked a Memorandum of Understanding (MOU) with the Cyber Security Agency of Singapore to strengthen Singapore’s cyber security posture and stay ahead of a rapidly evolving cyber security landscape.
  • Integrated movie producer mm2 Asia is riding on growing demand and support for local movie production as well as graining traction in overseas markets for its movies.

GLOBAL FACTORS AND WORLD INDICES:

  • European shares fell on Tuesday following strong gains in the previous session, with Germany under performing after reporting industrial orders unexpectedly fell in August.
  • Hong Kong shares ended 0.19 per cent lower on Tuesday, after gains in the early morning were pared by profit-taking. The benchmark Hang Seng Index closed down 41.67 points at 21,812.83.
  • The Nikkei-225 index at Tokyo Stock Exchange rose 180.61 points to 18,186.10, while the Topix index of all first section shares added 11.92 points, or 0.81 per cent, to 1,475.84.
  • Australian shares finished 0.33 per cent higher on Tuesday, led by gains in banks and miners but came off a near 1-month high hit earlier in the day on profit-taking – particularly in telecommunications and industrials stocks.
  • Fading expectations that the US Federal Reserve will raise interest rates this year and a bounce in oil and commodity prices helped lift Asian stocks to two-week highs on Tuesday.
  • Dollar held its ground Tuesday against major currencies as investors returned to equities, betting that the Federal Reserve would delay hiking rates after seeing disappointing US economic data.
  • China’s yuan became the fourth most-used world payment currency in August, overtaking the Japanese Yen.
  • Gold held near the highest level in a week after bets shrank for a US rate rise this year, boosting the outlook for the metal which doesn’t pay interest or give returns like other assets such as bonds and equities.
  • Oil prices held above US$46 a barrel in Asia Tuesday ahead of a report on US commercial crude inventories, a closely watched indicator of demand in the world’s top consumer.
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