STI MARKET REVIEW & Technical Analysis with Forecast for 19 Nov

Posted: November 18, 2015 in Stock Tips

The benchmark Straits Times Index STI opened 8.78 points or 0.3 per cent lower at 2,908on Wednesday. STI came off from its intra-day peak of 2909.45 and low of 2884.03. STI closed lower to 30 points or 1% at 2890.68
LOCAL BOURSE
Singapore shares opened lower as investor sentiments were dimmed by the 16-year low in commodity prices.The investors have mixed sentiments as they are awaiting the detailed report of GDP which will be released Wednesday next week.
MARKET FORECAST
Asian stock markets are expecting to fall amid fears that the terror attacks in Paris would hurt Europe’s economic recovery. STI has taken a support of 2885 we are expecting it will go more down if it break support. Technical indicator also not supporting the STI market.
NEWS

  • Shares in Neptune Orient Lines (NOL), buoyed by news of a potential acquisition by CMA-CGM or AP Moeller-Maersk,gained 18% since it reported a 3Q loss of US$96 million.
  • Sembcorp Marine is down 2.2% at $2.20 after a customer cancels a US$214 million ($305 million) contract to build a drilling rig.
  • Wilmar is trading down 1.0% as it is stuck in a trading range until it can improve its return on equity any further.Wilmar’s management emphasised achievements in scale, distribution, vertical integration and potential to capture a share of the branded staple food market in Asia, but remains skeptical.

GLOBAL FACTORS AND WORLD INDICES:

  • Signs of possible inflation gains in the United States helped boost the dollar to its highest level against the euro since April.The dollar rose to US$1.0644 per euro, and was slightly higher against the yen but fell against British pound.
  • US stock indexes opened higher as better-than-expected earnings from Wal-Mart and Home Depot allayed fears of a retail slowdown after last week’s sharp selloff in the sector.
  • Singapore Exchange Ltd will open a dark pool for bonds entery for the institutional fixed-income for the first time next year.SGX is seeing a business opportunity in offering a platform for fixed income as regulatory changes prompt global investment banks to scale back in this segment.
  • Major European shares emerged, while US stocks held their gains from the prior session as investors continued to show resilience after Friday’s deadly terror attacks in Paris.The majority of stocks globally remain unfazed by last week’s terrorist attacks in Paris.
  • Tokyo’s benchmark stock index closed flat as investors await the outcome of a two-day central bank meeting for fresh trading cues.The Nikkei 225 at the Tokyo Stock Exchange edged up 0.09 per cent, or 18.55 points, to 19,649.18.
  • China stocks fell roughly 1 per cent as a surge in property shares in the wake of encouraging home price data was offset by slides in many other sectors as investors took profits.The market has rebounded more than 25 per cent from the low hit during the summer rout, but selling pressure is increasing as China will soon resume initial public offerings and many investors remain worried about the economy’s health.
  • Oil prices rebounded in Asia but buying sentiment remained sluggish owing to supply glut woes and a strong dollar.Traders are waiting for the release of report on commercial stockpiles in the world’s top oil consumer which is expected to show an increase and further confirm the oversupply.
  • Gold was down another $3 in the Asian session,showing that the speculators are fearless. Traders are counting down the days to the Federal Reserve meeting in December which is impacting global prices of gold as gold gains during global political stress has been moving just the opposite.
  • Hong Kong stocks slipped, taking cues from weak mainland markets which remained fragile, amid lingering anxiety over terrorism in the wake of Friday’s deadly attacks in Paris, falls in global commodity prices, and the prospect of United States interest rates rising soon.
  • Commodities like oil, copper and coal are trading around lowest levels since the global financial crisis putting growing economies in concern.
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