STI TECHINCAL REPORT; WEEKLY WRAP OF STI

Posted: November 27, 2015 in Stock Tips

Straits Times Index (STI) dropped 25.57 points to 2,859.12 on Friday, bringing its loss for the week to 58 points or 2 per cent and for the year to 15 per cent. Turnover throughout the five days was low and focused mainly in blue chips and penny stocks. Market consolidated within the range of 2880-2940 from quit a few time but felled after braking its support of 2880 and ended at 2859.18 this week. The Market opened Gap down due to the fall in China’s Market by around 4.5% down after Chinas Industrial data fell by 4.6%. The government’s growth forecast for the full year, however, has been trimmed to “close to 2%”, compared with its earlier projection of 2-2.5%. On a seasonally adjusted, annualised basis, the economy grew 1.9% q-o-q, reversing from 2Q’s 2.6% contraction, as per the Ministry of Trade and Industry. This compares an earlier flash estimate of a 0.1% expansion. Singapore’s private residential property prices have slid 8.2% from its peak in September 2013.The decline largely stems from property cooling measures.
MARKET FORECAST FOR WEEK AHEAD
STI is expected to be bearish as it has broken its support level at 2879.The Fed meeting next month and China’s falling industrial output will lead towards a downtrend. If STI breaks its support level of 2842 it will go further down.
STI COUNTER SPECIFIC NEWS

  • QT Vascular received a stay of enforcement regarding a legal matter in the US.The firm had been ordered to pay damages of US$20.034 million ($28.2 million) in a legal case that has already been through a trial court, but has been granted a stay of enforcement during the appeals process.
  • CHINA Everbright won a deal with the People’s Government of Daxing District, Beijing, to upgrade and expand the Beijing Daxing Tiantanghe Waste Water Treatment Project.
  • China Fishery Group Ltd. failed to repay a US$31 million installment due earlier this month on a US$650 million loan.As a result, one of the lenders successfully applied for provisional liquidators, indicating that the lender is unwilling to negotiate for further extensions or waivers.
  • Developer Bonvests Holdings has agreed to acquire the property known as Lot 66 and 482-484 Murray Street, Perth, Australia from with Murray Street Pty Ltd and the property known as 486-488 Murray Street from Kingsgold Pty Ltd.The total consideration for the acquisitions is A$14.78 million ($15 million).
  • Avic International Maritime Holdings said its subsidiary Deltamarin has clinched a €2 million ($3 million) contract from Qingshan Shipyard of Sinotrans in China to design the world’s first LNG handysize bulk carriers.
  • Chinese shares plunged more than six percent Friday, after inquiries were announced into several major brokerage firms.The benchmark Shanghai Composite Index slumped 6.11 per cent, or 222.18 points, to 3,413.37. The Shenzhen Composite Index, which tracks stocks on China’s second exchange, tumbled 6.66 per cent, or 154.96 points, to 2,170.73.

GLOBAL FACTORS AND WORLD INDICES

  • Asia risks rise as Fed liftoff tests stability.A faster than expected withdrawal of monetary-policy accommodation in major advanced economies could trigger a reversal of global term premia.
  • Profits earned by Chinese industrial companies fell 4.6 per cent in October from a year earlier,declining for the fifth consecutive month. Industrial profits – which cover large enterprises with annual revenue of more than 20 million yuan (S$4.41 million) from their main operations – fell 2.0 per cent.
  • A plunge in Chinese stocks dragged Asian markets down on Friday after authorities launched a probe into several brokerages and profits at the country’s industrial giants sank far more than expected.
  • European share index fell from a three-month high, hit by a drop in the mining sector after a slump in Chinese equities which was triggered by weak data and a regulatory crackdown.
  • Hong Kong stocks slid on Friday, with the headline Hang Seng index posting its worst weekly performance in two months as a tumble in mainland stocks triggered anxiety across the region.The Hang Seng index fell 1.9 percent, to 22,068.32.
  • Chinese shares plunged more than six percent Friday, after inquiries were announced into several major brokerage firms.The benchmark Shanghai Composite Index slumped 6.11 per cent, or 222.18 points, to 3,413.37. The Shenzhen Composite Index, which tracks stocks on China’s second exchange, tumbled 6.66 per cent, or 154.96 points, to 2,170.73.
  • Japan’s core consumer prices fell for the third straight month and household spending slumped in October, underscoring the fragile nature of the economy and keeping policymakers under pressure to take further steps to jump-start growth.The core consumer price index (CPI), which excludes volatile fresh food but includes oil costs, fell 0.1% in the year to October.
  • Gold dipped towards its lowest level in nearly six years on Friday and was on track for a sixth straight weekly decline, weakened by a robust dollar and expectations of a US interest rate hike next month.
  • The dollar is trading near an eight-month high against a basket of major currencies, boosted by euro weakness and prospects of higher US rates.
  • Crude oil futures fell on Friday with losses this month standing at over 8%, hurt by disappointing Chinese economic data and worries over a supply glut.A firmer US dollar also weighed on oil, making greenback-denominated contracts more expensive for holders of other currencies.
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