STI Technical Analysis Review & Market Forecast

  Singapore shares opened 0.5 per cent higher, with the STI up 13.82 points to 2,969.76 following a mixed session for US markets before the weekend. and ended 34.50 points or 1.17% lower to 2921.44. STI came off from its intra-day peak of 2921.44 and low of 2921.44.

Investors look to individual counters after days of mass selling followed by mass buying as volatility hit global markets. The result is a mixed morning trading session in Singapore. STI ended in red.

STI Day Performance

Open: 2987.18

High: 2987.18

Low: 2921.44

Close: 2921.44

Change(Points): -34.50

% Change: -1.17%

Volume: 1268.20 M

Rise: 155

Fall: 244

Unch: 396

LOCAL BOURSE

Bank lending in July rose from June, but by a smaller extent compared to a month ago, preliminary data from the Monetary Authority of Singapore (MAS) showed on Monday. This reflected weaker growth in business lending, given the big boost in construction loans in June.

Market forecast: STI is to take side ways trend. Its suport level is at 2904, if breaks this level it is expected to go up to level of 2800, it has its resistance at 3000. However, market sentiment still remains bearish due to expectation of increase in US interest rate by FED in september.

STI LEVELS
Support 1	2905
Support 2	2850
Support 3	2800
Resistance 1	3000
Resistance 2	3050
Resistance 3	3115

STI COUNTER SPECIFIC NEWS

• Raffles Medical Group’s, wholly owned subsidiary, Raffles SurgiCentre, has entered into a share purchase agreement with AEA International Holdings. This is for the acquisition of 375,112 shares, or about a 55% stake in International SOS (MC Holdings) (MCH).
• Grand Banks Yachts posted a $2.44 million net loss for 4Q ended June 30, compared with $801,000 in earnings a year earlier. Revenue increased 3.5 per cent to $13.68 million.
• Chasen Holdings, the specialist in relocation solutions, technical and engineering services and third-party logistics, says it recently secured contracts worth $44.5 million for FY15/16.

GLOBAL FACTORS AND WORLD INDICES:

• Chinese stocks sank again on Monday amid uncertainty over US interest rates, reviving fears of a broader global economic slowdown that has rocked the world's financial markets.
• Hong Kong stocks were almost flat on Monday, capping a volatile month in which major indexes registered their worst performance in nearly four years amid global market turmoil triggered by concerns over the Chinese economy. Hang Seng index rose 0.3 per cent, to 21,670.58, while the China Enterprises Index lost 0.1 per cent, to 9,741.41 points.
• European shares fell on Monday, with Germany's DAX and France's CAC on track for their worst month in four years, plagued by sliding Chinese stocks and the threat of a US rate increase as early as September.
• Australian shares fell one per cent on Monday, capping its worst monthly performance in seven years, amid confusion over central bank policy direction in the US and China. The index fell 8.6 per cent in August, its biggest monthly decline since late 2008.
• South Korea will consider increasing its imports of Iranian crude oil and condensate when sanctions on Tehran are lifted, a senior government official said on Monday.
• Dollar slipped in Asia on Monday on fears that China's economic malaise could drag on global growth, reversing a rally that had been fuelled by hopes for a September Federal Reserve rate hike.
• Iran expects to finalise the wording for a new model for international oil contracts in the next three weeks, the oil minister said on Monday, as Tehran seeks to boost recovery from its fields with the help of foreign companies.