STI Technical Analysis & SGX Review with Market Forecast for 3 Sept

  Straits Times Index trades 0.2% higher at 2,887.04 in early trade, and ended 4.60 points or 0.16 % lower to 2878.10. STI came off from its intra-day peak of 2906.67 and low of 2877.49.

STI moved in tandem with the US futures market as traders tried to anticipate how Wall Street might perform during its Wednesday session. 

STI Day Performance

Open: 2897.76

High: 2906.67

Low: 2877.49

Close: 2878.10

Change(Points): -4.6

% Change: -0.16%

Volume: 1103.60 M

Rise: 163

Fall: 197

Unch: 431

LOCAL BOURSE

The first Singapore Savings Bond (SSB) will be issued on Oct 1, with those holding the bonds for the full 10 years earning an average interest rates per annum of 2.63%, according to the Monetary Authority of Singapore.

For those who redeem the bonds at an earlier date, the average return per year will range from 0.96% at the end of the first year to 2.53% at the end of year nine. Those who hold the bonds for five years will earn an average of 2.01% per annum.

STI LEVELS
Support 1	2840
Support 2	2805
Support 3	2765
Resistance 1	2930
Resistance 2	2986
Resistance 3	3029

Market forecast:

STI is expected to take side ways trend. Its support level is at 2840. if breaks this level it is expected to go up to level of 2800, it has its resistance at 2930. Market sentiment still is bearish due slow down of China’s economy as the manufacturing data is lower than expected.

STI COUNTER SPECIFIC NEWS

• CapitaLand is flat trading at $2.80 after announcing that its serviced residence unit, The Ascott, has won new contracts to manage over 850 units in four growing Asian markets.
• OCBC Investment Research says macro headwinds and tough conditions in the retail business lead it to maintain a neutral rating on the consumer sector.
• Shares in Chinese Global Investors by rose as much as 16% early on Wednesday, a day after the firm said it was selling its wholly owned subsidiary, Hitchins International, for $3.28 million to the current management of the unit.
• Singapore's telecommunications sector is set for disruption, making it a risky one to be in at this juncture. The bank reviews recent news in the sector which it says points to the risk of increased competition that - albeit minor at this stage - could pose risks to incumbents.

GLOBAL FACTORS AND WORLD INDICES:

• Asian stocks witnessed a fresh round of volatility on Wednesday, as further evidence of slowing growth in China's economy brought a new bout of uncertainty to global markets.
• The Indian economy is still expected to grow around eight per cent in the fiscal year to March 2016, said the chief economic adviser at the finance ministry on Tuesday.
• Malaysia's ringgit fell the most in more than a week and bonds dropped as a slump in Brent crude prices clouds the outlook for government finances in the oil-exporting nation.. Brent decreased 1.9 per cent after falling 8.5 per cent on Tuesday in its biggest decline since 2011 before US stockpiles data.
• Hong Kong stocks sank 1.18 per cent by the end of a roller-coaster session Wednesday with traders gripped by ongoing concerns about China's economic crisis that has rattled world markets. The benchmark Hang Seng Index fell 250.49 points to close at 20,934.94 on turnover of HK$96.05 billion (S$17.52 billion).
• SINGAPORE shares rose by a modest 0.4 per cent, with the Straits Times Index up 11.15 points to 2,893.92 following a weak opening in Japan.
• Oil prices fell around 2 per cent in Asian trade on Wednesday, as a stronger-than-expected build in US crude oil stocks and weaker US manufacturing data fuelled a rout in prices that started in the previous session..
• World oil prices tumbled on Tuesday as poor manufacturing data in China, the world's largest energy consumer, hammered the outlook for demand and shook market confidence.
• Gold edged lower on Wednesday with appetite for the metal soured by a firmer dollar despite weaker Asian equities, and failure to breach a key resistance and a looming US rate hike suggest more downside risk.