Posts Tagged ‘Singapore Stock Picks’

Market Review for STI: The Straits Times Index (STI) stumbled right off the blocks to slip 15.61 points or 0.46 per cent at 3,382.65 Singapore stocks continue their downward slide following a slump in US equities, after the dollar gained amid speculation the Federal Reserve is moving closer to raising interest rates.sti chart
STI Day Performance
Open: 3380.67
High: 3391.82
Low: 3369.42
Close: 3379.57
Change(Points): -18.69
% Change: -0.55%
Volume: 1255.3M
Rise: 106
Fall: 278
Unch: 401
Market forecast for STI: STI has covered its previous gap so we may expect bullish rally in next trading session.
Straits Time Levels
Support 1: 3360
Support 2: 3340
Support 3: 3320
Resistance 1: 3440
Resistance 2: 3456
Resistance 3: 3480
Technical Indicators: RSI is at 43 and CCI is at -221.
Top Gainers: citydev.sg, sia.sg, capitaland.sg, starhub.sg, genting sing.sg
Top Losers: jardine c&c.sg, jsh usd.sg, jmh usd.sg, uob.sg, dbs.sg
Important Factor for today:

  • Asian stocks fell to a two-month low on Wednesday as nervous markets recoiled on worries about an earlier US interest rate hike, while such a prospect helped send the dollar to a 12-year high against the euro.
  • Food Company Del Monte Pacific Limited (DMPL) was hit by a US$2.2 million net loss in its financial third quarter ended January 31, 2015, due mainly to acquisition expenses.
  • Frasers Hospitality, the hospitality arm of Frasers Centre point Group, has opened its third property, Fraser Residence Kuala Lumpur.
  • Gold hovered near its lowest in over three months hurt by consecutive losses in the last seven sessions as a robust dollar and expectations of higher US interest rates curbed appetite for the metal.
  • Sembcorp Industries said that it is not in talks to acquire a 1,440 megawatt power plant in Odisha, India, from the GMR group. 
  • Noble Group declined to its lowest level in 17 months, wiping out gains since the commodities trader rejected criticism of its.
  • A RETURN to risk-on mode or interest rate-related volatility may result in capital flight from the Singapore real estate investment trust (S-Reit) sector. If this happens, it would be a better opportunity to buy Reits, compared to the current situation where valuations are expensive.

Market Review for STI:
China’s stocks rose to its biggest gain in a week as renewed economic optimism showed that new equity sales will divert from existing shares. China’s manufacturing Purchasing Manager’s Index from HSBC Holdings Plc and Markit Economics rose to 50.8. Singapore has expanded economic co-operation with Russia. Besides, Singapore’s increased inflation rate by 2.7% may boost share prices.

STI Day Performance
Open 3258.28
High 3269.17
Low 3256.17
Close 3262.03
Change(Points) 4.630
% Change 0.14%
Volume 1592.5M
Rise 231
Fall 168
Unch 693

Market forecast for STI:
After moving down over last week, Singapore Share prices opened near previous close with STI up 0.88 points to 3258.280. It formed an inverted hammer pattern for the day by making high at 3269.170. The whole day range was 12.67 points by making low at 3256.500 and closed at 3262.030. Green candlestick pattern showed that buyer’s sentiments dominated sellers. A bullish reversal is anticipated as it covered prices range under rounded top pattern for more than a month and inflation in Singapore may put further trajectory.
Technical indicators:
RSI stood below the centre line at 46.484 with its CCI at-125.18. Difference line of MACD performed at 5.189 which lied below its signal line which performed at 8.386.

STI LEVELS
Support 1 3246
Support 2 3236
Support 3 3221
Resistance 1 3279
Resistance 2 3289
Resistance 3 3304

Important Factor for today:-

  • Yoma Strategic Holdings has received an acquisition offer of 70% of land in Pun Hlaing Golf Estate (PHGE).
  • R H Energy is under the reverse takeover by Chiway Land Group to get listing on SGX.
  • Olam International reported a partnership with Mitsubishi Corporation of Japan (MC) to grow its Australian grains business for the investment of US$80 million to take an 80% equity stake in Olam’s wholly-owned subsidiary, Olam Grains Australia (OGA).
  • Nam Cheong sold two accommodation work barges worth US$84 million to repeat customer Perdana Petroleum BHD.
  • Singapore’s inflation rose to 2.7% in May.
Top Gainers Top Losers
Scrip Name CMP %change Scrip Name CMP %change
ComfortDelGro 2.5 2.88 HongkongLand USD 6.58 -1.05
SIA Engineering 5.09 1.6 Ascendas Reit 2.27 -0.87
CityDev 10.35 1.07 HPH Trust USD 0.715 -0.69
Golden Agri-Res 0.565 0.89 Olam Intl 2.44 -0.41
SingTel 3.83 0.79 Global Logistic 2.66 -0.38

GOLDImage
Gold price rose to the three week high as the increasing tension in Ukraine and finally break the level of $1300, giving a good sustain over the level gave closing at 1309 as the yesterday’s trading it seems that now the buying trend had come in gold after a long time and now gold head to the level of 1330
Forecast
A little pullback in gold can give a buying pressure in commodity to raise for the next resistance, today gold can trade in a range of 1295 to 1313.
SILVER
ImageHolding of biggest silver backed ETF (exchange traded fund), New York stood at 10,309 tonnes unchanged from previous day. Strongly following the gold movement Silver spot gained 0.4% in yesterday’s trading session, as traders were focus on the Ukraine tension & considering the slowdown in China slowdown the industrial demand of Silver from China.
Forecast
Technically Silver took a upside yesterday but failed to close higher and gave the formation of Shooting Star on chart and according to the Shooting Star a chance of little pull back can be seen in Silver on a major range support of $19.350 will continue with the resistance of $19.945
CRUDE Image
Crude oil price fell down in yesterday’s session the lower demand from China & Japan as supported the crude oil price to go more down U.S. commercial crude oil and refined product inventories were forecast to have increased last week, with crude stocks hitting a record high for the third week in a row
Forecast
A little downfall in Crude Oil price can be marked in the today’s session and it can trade in a range of 98 to 100
TODAY’S DAY RANGE

COMMODITY S1 S2 R1 R2
GOLD 1300 1290 1308 1320
SILVER 19.490 18.850 19.850 20.500
CRUDE 99 98 100 100.8

DAY’S HIGHLIGHT

  • Important data for today would be Trade balance, PMI & Unemployment Change

  • US ISM Non-Manufacturing PMI moved to 55.2 vs 53.1 prev.

  • HSBC final manufacturing PMI moved to 48.1 else previously it was 48.3 that increase the worry for Chinese Economy.

Weekly Technical view on STI
This was the week in which only green candle was formed by STI as there was not a major change in the trading range of STI it opened at 3071 and made a high of 3101 where gave the closing at the same level as it was for the last week candle @3073.
Long Legged Doji was formed by this week candle. As it has long upper & lower shadow with Doji as the shorter trading range in the middle
Weekly wrap of STI:

STRAIT TIMES WEEKLY WRAP
OPEN 3071.87
HIGH 3101.86
LOW 3053.59
CLOSE 3073.39
CHANGE (In Points) 0.33
% CHANGE 0.010
Macroeconomic factors:
  • A good jump in the Trade Confidence Index as it’s the highest in two years at 115 i.e. 10 points. Announced by the HSBC
  • Home price inflation in China slowed in Feb also as it’s the continuous second month where average for new home price rose 8.7% for the 70 major cities in China. If calculated for MOM basis price rose 0.3% for Feb.
  • Statement issued by the Finance Ministry of Singapore on Tuesday said (SMEs) small medium enterprises will receive almost Q3 of sum disbursed, which calculated over 74000 employers will be receiving around S$800 Million by wage credit scheme, pay outs by March 31.
  • SGX is about to revise the fee structure which will be applicable from 2nd May 2014 as to make the trading more cost effective the clearing fee would be reduced by one fifth from 0.04% to 0.325% of contract value.
  • Economists forecasted 3.8% of Growth lower than expected as 3.9%
Market Forecast for week ahead:
  • As the performance of the STI was in a very range bound for this week and closing for the week was as the same for the last week. STI formed the Long Legged Doji candle for this week.
  • Studding Bollinger bands chart pattern it’s very clear that the market is in a very range bound conditions as its not able to maintain itself above 3100 and closed at 3073.
  • Technically STI can fall for multiple support and it would be possible by the global economic factor & market sentiment to sustain above the mark of 3100.
Technical Indicators:
MACD is moving below the base and performing flat where RSI is at 44.51 CCI is also going down and is @ -52
Support 1 Support 2 Support 3 Resistance 1 Resistance 2 Resistance 3
3040 3000 2955 3130 3170 3210
Weekly wrap of KLCI:
KLCI closed Positive this week as it makes the green candle for this week after the red weekly candle.
Bullish Engulfing Pattern formed in this week, as Green candle formed for this week was followed by the red candle of the last week where the open & close for this week was formed in the range of the last week candle.
 
Weekly Technical view on KLCI
KLCI WEEKLY WRAP
OPEN 1806.15
HIGH 1821.88
LOW 1802.88
CLOSE 1820.48
CHANGE (In Points) 15.36
% CHANGE 0.850
Market Forecast for week ahead:
  • KLCI took the up move for this week after the two continuous down trend for two weeks 
  • The 50 days EMA’ is trading at 1778 where 20 days EMA is at 1814.
  • For the coming week the KLCI can take a upside movement but on the envelope channel indicator it seems consolidate in the range of 1790 to 1835
Technical Indicators:
The RSI is moving exactly above the base line at 53.92 else CCI is performing at -21
Support 1 Support 2 Support 3 Resistance 1 Resistance 2 Resistance 3
1805 1795 1780 1835 1850 1870