Singapore Stock Market : STI Technical Analysis & Forecast

STI MARKET REVIEW:

Singapore share prices opened lower with the STI down 26.63 points or 0.92 per cent to 2859.66 and ended 13.29 points or 0.46% lower to 2873.00. STI came off from its intra-day peak of 2905.29 and low of 2847.17.

Singapore in early trade rebounded after gap down open moved in positive territory due to declartion of rate cut in China but it came down due to increase of selling pressure latter in the market and closed in red.

 STI Day Performance:

Open: 2859.66

High: 2905.29

Low: 2847.17

Close: 2873.00

Change(Points): -13.29

% Change: -0.46%

Volume: 2306.40 M

Rise: 201

Fall: 240

Unch: 353

LOCAL BOURSE

Singapore's industrial output marked 6th consecutive contraction by falling more than expected in July. Factory output fell by 6.1% y-on-y last month. Excluding the volatile biomedical sector, it contracted by 13.4%, output would have fallen by a smaller 4.1%.

Singapore dollar extended gains despite of weaker industrail ouput data of July, which came lower than expected,as shares on the Shanghai Composite index rallied 3.7%. It gained to 1.4000 versus the US dollar from around 1.4040, as shares on the Shanghai Composite index rallied 3.7%.

Market forecast:

STI is to takeside ways trend. It has its resistance at 2928, if it breaks this level it is expected to go up to level of 2947 and it has its support at 2800. However, market sentiment still remains bearish as they did not find China’s rate cut sufficient to control the global meltdown due to slowing growth of Chinese economy.

STI COUNTER SPECIFIC NEWS

• Eu Yan Sang, the retailer of Traditional Chinese Medicine, has suffered lossed in the 4th quater dur to challenging macro-economic environment in Hong Kong and Malaysia.
• Retail Real Estate Investment Trusts (REITs) have reported over the labour cruch and are set to grow again.
• Croesus Retail Trust (CRT), has announced dividends of 2.02 cents per unit for fourth quater 2015, which make toat of DPU to 8.08 which is 2.8% more from FY2014.

GLOBAL FACTORS AND WORLD INDICES:

• Asian stocks fell on Wednesday as investor sentimen remain negative as they find fresh rate cut still not enough to stabalise the slowdown of the Chinese economy or can help to stop the donwwanrd trend of the Chinese market. China's key share indexes saw lot of fluctuation in the market today. Indexes moved higher quite a times in the earlt tarde today but they came down due to the selling pressure in market. Investors are expecting more support from the central bank and the government.
• European shares fell on Wednesday, in line with decline in global market all over the world. Due to concerns over China’s economy. Also the stock of bank and mining stocks underperforming. Pan-European FTSEurofirst 300 index, fell by 2.6% inline with silimar amount of fall in the eurozone's blue-chip Euro STOXX 50 index followed by rise of 4.3 % in previous trading session.
• Shanghai stocks closed around 1.27% lower, trading was quite volatile on Wednesday, the fall was seen even though central bank interest declared a rate cut with the aim to boost boost the flagging economy and falling shares. China's benchmark Shanghai Composite Index closed after falling 37.68 points to 2,927.29 with turnover of 461.8 billion yuan. It surged up to 4.29 per cent and was down as much as 3.85 per cent during the day.
• Australian stocks, moved up after the declartion of rate cut by China. However buoyed by China's move to cut interest rates, staged a late rally to finish higher Wednesday after trading in the red for most of the session. The benchmark S&P/ASX200 index closed 0.69 per cent higher at 5,172.8 after falling as low as 5,051.40 in early trade.
• The dollar stood up strong against the yen and euro on Wednesday, as both the Chinese and European stock markets faced a losing ground despite China’s easing measures, where investors are still anxious about the global economic outlook.
• Crude oil futures traded positive on Wednesday after the sharp fall but still not far off 6-1/2 year low on the back of the negative Chinese market outlook which is the largest energy consumer.
• Gold slipped on Wednesday as equities bounced back after China eased monetary policy further to support a faltering economy and stock markets that had fuelled this week's global rout.
• Ringgit dropped to a 17-year low influenced by the degraded Malaysian economic outlook which is facing the dual effect of political scandal, oil price and equity market sell down.