Friday, 4 September 2015

STI Weekly Technical Analysis & Market Forecast for Week Ahead

Weekly wrap of STI: Straits Times Index (STI) opened at 2987.18 i.e., 31.24 or 1.05 % lowerand ended 92.13 points or 3.11% lower to 2863.81 this week. STI came off from its weekly peak of 28987.18 and low of 2860.00.
Singapore shares eased by one per cent on Friday, with STI down 29.17 points to 2,877.26 on early profit-taking and closed at 2863.81. Singapore market posted losses at midday. Market breadth remained negative. STI came off from its daily peak of 2893.12 and low of 2893.12. 
CHANGE (In Points)
 Companies in Singapore are positive about their six-month business and trade outlook, with client acquisition and international expansion being key drivers of growth. Despite their long term focus on international opportunities, Singapore companies are currently more bullish on achieving growth domestically.
Singapore's Purchasing Managers' Index (PMI) slipped further into contraction mode in August, dipping 0.4 point to 49.3, though the drop was not unexpected. Private-sector economists had earlier projected a reading of 49.4, down from July's 49.7. A reading above 50 represents growth, while one under 50 points to a contraction in the manufacturing sector.
Market Forecast for week ahead:
STI showed bearish sentiment this weak. STI has broken its support of 2870. It has its support at 3840, if it breaks this level it may fall till 2800. MACD shows a postive moment next week as faster moving average curve has crossed slower moving average curve. However, US monthly job data to be released on Friday evening will impact market next week.
Weekly Technical view on STI 
Sup 1
Sup 2
Res 1
Res 2
Res 3
Technical Indicators:
RSI for this week is 20.471 with CCI at -192.043. Besides, difference line of MACD -106.253 and crossed its signal line -53.269.
  • Del Monte squeezes Q1 loss to US$12m.
  • Sunlight Group was not going through with the acquisition of Alexander Resource Ltd (has become "technically insolvent").
  • Singpost completed the acquisition of local self-storage facility operator Store Friendly Self Storage Group for S$12 million.
  • Stats Chip outlook is now revised to negative; 'BB' rating is affirmed.
  • CapitaLand's Ascott wins four contracts in Asia.
  • Hong Kong shares ended 0.45 per cent lower on Friday, bringing an end to another painful week for the Hang Seng Index, owing to ongoing concerns about the Chinese economy.
  • AUTHORITIES in Singapore, Malaysia and Thailand have published a handbook to guide companies that hope to offer securities across borders through a streamlined review framework.
  • UOL Group, Yangzijiang Shipbuilding and SATS will replace Jardine Matheson, Jardine Strategic and Olam International as constituents of the Straits Times Index (STI). This comes after the conclusion of the semi-annual review.
  • Japanese stocks slipped to seven-month lows, with the Nikkei posting its biggest weekly fall in almost a year and a half with speculators dumping futures while investors stayed risk-averse ahead of the release of a key U.S. jobs report later in the day.
  • Swiss consumer prices fell in August by the most in 56 years, the strongest indication yet of the pricing pressure from Switzerland's strong currency and low oil prices.
  • Malaysia saw exports in July increase 3.5 per cent from a year earlier as demand for electrical and electronic goods surged, government data showed on Friday.
  • Andy Hall, one of the best-known oil traders who's bullish on prices, said the decline in the oil market isn't a repeat of 1998 or 2008. The absence of "extreme contango," which occurs when commodities prices close to delivery are cheaper than those to be delivered at later dates, suggests that "the world, whilst moderately oversupplied, is not awash in oil.
  • Gold held declines from a two-day losing streak on Friday, ahead of a crucial US jobs report as traders waited for clues about the timing of a Federal Reserve rate hike.
  • Oil prices eased in Asian trade on Friday as investors turned cautious ahead of US jobs data later in the day that is expected to play into the Federal Reserve's decision on the timing of any US rate hike.


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