Reserve Bank of India maintains repo rate at 6.75%, CRR at 4%

The Reserve Bank of India (RBI), in its fifth Bi-monthly Monetary Policy Statement for 2015-16, has decided to keep the repo rate same, with no pulls or pressure from the market. Governor Raghuram Rajan declared that the Repo Rate will be maintained at 6.75%, with CRR at 4%. Reverse Repo Rate is held at 5.75%.

RBI in an official statement said, "Since the fourth bi-monthly statement of September 2015, global growth continues to be weak. Global trade has slowed further with waning demand and oversupply in several primary commodities and industrial materials. In the United States, inventory accumulation is likely to hold down growth in Q4 of 2015. Industrial production slumped in October on cutbacks in oil drilling, while exports were undermined by the strengthening US dollar. Consumer confidence was, however, supported by the diminishing slack in the labour market. In the Euro area, high frequency indicators such as retail sales, purchasing managers’ indices and unemployment point to an uptick in a still anaemic recovery, with monetary policy expected to be increasingly supportive as risks of undershooting the inflation target persist. In China, slowing nominal GDP growth and high debt continue to raise concerns, especially given the overcapacity in certain sectors. Other emerging market economies (EMEs) continue to face headwinds from domestic structural constraints, shrinking trade volumes and depressed commodity prices."

It added, "The Reserve Bank assessed that the inflation target for January 2016 at 6 per cent was within reach. Accordingly, it front-loaded its policy action in response to weak domestic and global demand that were holding back investment, while noting that structural reforms and productivity improvements would continue to provide the main impetus for sustainable growth."

The Indian central bank has cut policy rates by a cumulative 125 basis points this calendar year, and surprised markets and analysts with a sharp 50 basis points rate cut in the last rate review.

India’s central bank has managed to tame inflation down to manageable levels and the price gauge has remained within its comfort zone for several months now. In fact, wholesale price inflation has consistently been in the deflationary territory. Retail inflation saw an uptick to 5 per cent in October, which was a four-month high, rising from 4.41 per cent in September. That did raised a few eyebrows as did the reports about a drop in rabi crop output and a sharp rise in the prices of pulses, which are likely to put pressure on food price inflation. Yet, the comforting factor is that the retail inflation number remains below RBI's January 2016 target of 6 per cent.

The Reserve Bank will shortly finalise the methodology for determining the base rate based on the marginal cost of funds, which all banks will move to. The Government is examining linking small savings interest rates to market interest rates. These moves should further help transmission of policy rates into lending rates. In addition, the on-going clean-up of bank balance sheets will help create room for fresh lending. The Reserve Bank will use the space for further accommodation, when available, while keeping the economy anchored to the projected disinflation path that should take inflation down to 5 per cent by March 2017.

The sixth bi-monthly monetary policy statement will be announced on Tuesday, February 2, 2016.

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STI TECHINCAL REPORT; WEEKLY WRAP OF STI

Straits Times Index (STI) dropped 25.57 points to 2,859.12 on Friday, bringing its loss for the week to 58 points or 2 per cent and for the year to 15 per cent. Turnover throughout the five days was low and focused mainly in blue chips and penny stocks. Market consolidated within the range of 2880-2940 from quit a few time but felled after braking its support of 2880 and ended at 2859.18 this week. The Market opened Gap down due to the fall in China’s Market by around 4.5% down after Chinas Industrial data fell by 4.6%.

The government's growth forecast for the full year, however, has been trimmed to "close to 2%", compared with its earlier projection of 2-2.5%. On a seasonally adjusted, annualised basis, the economy grew 1.9% q-o-q, reversing from 2Q's 2.6% contraction, as per the Ministry of Trade and Industry. This compares an earlier flash estimate of a 0.1% expansion. Singapore's private residential property prices have slid 8.2% from its peak in September 2013.The decline largely stems from property cooling measures.

MARKET FORECAST FOR WEEK AHEAD

STI is expected to be bearish as it has broken its support level at 2879.The Fed meeting next month and China's falling industrial output will lead towards a downtrend. If STI breaks its support level of 2842 it will go further down .

STI COUNTER SPECIFIC NEWS

• QT Vascular received a stay of enforcement regarding a legal matter in the US.The firm had been ordered to pay damages of US$20.034 million ($28.2 million) in a legal case that has already been through a trial court, but has been granted a stay of enforcement during the appeals process.
• CHINA Everbright won a deal with the People's Government of Daxing District, Beijing, to upgrade and expand the Beijing Daxing Tiantanghe Waste Water Treatment Project.
• China Fishery Group Ltd. failed to repay a US$31 million installment due earlier this month on a US$650 million loan.As a result, one of the lenders successfully applied for provisional liquidators, indicating that the lender is unwilling to negotiate for further extensions or waivers.
• Developer Bonvests Holdings has agreed to acquire the property known as Lot 66 and 482-484 Murray Street, Perth, Australia from with Murray Street Pty Ltd and the property known as 486-488 Murray Street from Kingsgold Pty Ltd.The total consideration for the acquisitions is A$14.78 million ($15 million).
• Avic International Maritime Holdings said its subsidiary Deltamarin has clinched a €2 million ($3 million) contract from Qingshan Shipyard of Sinotrans in China to design the world's first LNG handysize bulk carriers.
• Chinese shares plunged more than six percent Friday, after inquiries were announced into several major brokerage firms.The benchmark Shanghai Composite Index slumped 6.11 per cent, or 222.18 points, to 3,413.37. The Shenzhen Composite Index, which tracks stocks on China's second exchange, tumbled 6.66 per cent, or 154.96 points, to 2,170.73.

GLOBAL FACTORS AND WORLD INDICES

• Asia risks rise as Fed liftoff tests stability.A faster than expected withdrawal of monetary-policy accommodation in major advanced economies could trigger a reversal of global term premia.
• Profits earned by Chinese industrial companies fell 4.6 per cent in October from a year earlier,declining for the fifth consecutive month. Industrial profits – which cover large enterprises with annual revenue of more than 20 million yuan (S$4.41 million) from their main operations – fell 2.0 per cent.
• A plunge in Chinese stocks dragged Asian markets down on Friday after authorities launched a probe into several brokerages and profits at the country's industrial giants sank far more than expected.
• European share index fell from a three-month high, hit by a drop in the mining sector after a slump in Chinese equities which was triggered by weak data and a regulatory crackdown.
• Hong Kong stocks slid on Friday, with the headline Hang Seng index posting its worst weekly performance in two months as a tumble in mainland stocks triggered anxiety across the region.The Hang Seng index fell 1.9 percent, to 22,068.32.
• Chinese shares plunged more than six percent Friday, after inquiries were announced into several major brokerage firms.The benchmark Shanghai Composite Index slumped 6.11 per cent, or 222.18 points, to 3,413.37. The Shenzhen Composite Index, which tracks stocks on China's second exchange, tumbled 6.66 per cent, or 154.96 points, to 2,170.73.
• Japan's core consumer prices fell for the third straight month and household spending slumped in October, underscoring the fragile nature of the economy and keeping policymakers under pressure to take further steps to jump-start growth.The core consumer price index (CPI), which excludes volatile fresh food but includes oil costs, fell 0.1% in the year to October.
• Gold dipped towards its lowest level in nearly six years on Friday and was on track for a sixth straight weekly decline, weakened by a robust dollar and expectations of a US interest rate hike next month.
• The dollar is trading near an eight-month high against a basket of major currencies, boosted by euro weakness and prospects of higher US rates.
• Crude oil futures fell on Friday with losses this month standing at over 8%, hurt by disappointing Chinese economic data and worries over a supply glut.A firmer US dollar also weighed on oil, making greenback-denominated contracts more expensive for holders of other currencies.

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Singapore Stock Market Updates for STI Analysis & Forecast

STI MARKET REVIEW :

SINGAPORE shares were up in the early minutes of trade on Tuesday, with the Straits Times Index up 0.04% or 1.05 points to 2,904.54 and ended 20 Points or 0.69% Higher to 2,923.49.

STI came off from its intra-day peak of 2939 and low of 2898. Singapore stocks gained at noon on Tuesday, with a mixed performance among large-caps and little in the way of a strong lead from the US or other Asian markets. Straits Times Index rose 0.69% to 2,923.50. Market breadth was however negative.

LOCAL BOURSE

Singapore stocks showed mixed sentiments as the large cap performance was at equilibrium and small cap doing good.The local data showed that singapore is facing a mild deflation at around 0.5% showing a sign of concern.

MARKET FORECAST

STI is expected to go up in next trading session if it breaks its resistance level of 2940. The market has positive sentiments as it has advancedin the current session.Investors are waiting for positive trend ,as they are eager to invest in the market

Midas Holdings won contracts for metro rail and airport rail train works in China and Malaysia.Overall it has secured four contracts of which three are for metro rail projects in China, and one for an airport train in Malaysia.

• Keppel Corp has priced the issue of its $200 million notes due 2023.The notes, issued under the US$3 billion ($4.2 billion) multi-currency medium-term note programme, will bear interest at a fixed rate of 3.725% a year. It will be payable semi-annually in arrears and will have a tenor of eight years.
• Noble Group Ltd,have its credit rating cut to junk by Standard & Poor's on concerns about the company's liquidity.The ratings company placed its BBB-rating on Noble, the lowest measure for investment-grade debt, on review with "negative implications.

GLOBAL FACTORS AND WORLD INDICES:

• The chances of Federal Reserve raising interest rates at its next meeting in December climbed to 74 per cent.The probability the central bank will act at its Dec 15-16 session increased from less than 30 per cent as recently as mid-October, futures contracts show.
• The US dollar rose at the start of week after a holiday-shortened week packed with economic reports expected to show improvements that could support a Federal Reserve interest rate hike next month.
• Japanese stocks posted a modest rise in choppy trade to mark a fifth consecutive day of gains as investors waited for fresh trading cues.The Nikkei share average ended 0.2 per cent higher at 19,924.89.
• Australian shares fell 0.95 per cent in broad-based selling as falling commodities prices weighed on the index and investors took profits.The S&P/ASX 200 index fell 50.02 points to 5,226.4 at the close of trade.
• Oil prices climbed in Asia ahead of a key meeting of the Opec and US commercial crude inventories are to gauge demand in the world's biggest oil consuming nation.
• Gold held a second day of declines as investors continue to expect an increase in U.S. borrowing costs by the end of the year, cutting the appeal of bullion which doesn't pay interest.
• Europe's main stock markets fell at the start of trading , extending the previous losses, as investors seek shelter from tumbling commodity prices and a strong dollar.
• China is on track to reach its economic growth target of about 7% this year, and the economy is going through adjustments to maintain reasonable medium- to long-term growth.
• China stocks recouped early losses to end marginally higher as a late-afternoon surge in small-caps offset weakness in resource companies.The CSI300 index of the largest listed companies in Shanghai and Shenzhen ended little changed at 3,753.89 points, while the Shanghai Composite Index gained 0.2 per cent to 3,616.11.
• Australia's Treasury lowered its estimate of the economy's potential growth rate, or speed limit, reflecting weaker population growth.The economy's potential rate will be about 2.75 per cent over the next few years, down from 3 per cent estimated at the time of the budget.

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Singapore Stock Market Update: STI Technical Analysis & Forecast

STI MARKET REVIEW :

SINGAPORE stocks opened flat on Monday morning, with the Straits Times Index(STI) up 0.03 per cent, or 0.97 point, to 2,918.88 and ended lower to 10.1 points or 0.35% to 2907.80. 

STI came off from its intra day peak 2925.16 of and low of 2904.80.

LOCAL BOURSE

Singapore equities initially climbed up but the market ended on a low as a result of sluggish growth of asian economy. The market was on lower side due to the increase in risks in real estate investment trusts in 2016 because of weak economic fundamentals weighing on demand, while new supply is added into most sectors.Singapore REITs is expected to come back stronger to do more acquisitions in 2016.

MARKET FORECAST

STI is expected to consolidate in next trading session. Investors are still waiting for positive trend , but market is not showing positive trend. If it breaks the level of 3018 then the market is expected to go up.As fed is likely to increase its rate and also the slowing economic growth of asia will lead towards the sidewards or downwards movement of the market for now.

STI COUNTER SPECIFIC NEWS

• Citic Envirotech Ltd (CEL) has secured a Public-Private Partnership project in Liaoyang City, Liaoning Province, China worth $122 million.The project involves an investment into four wastewater treatment plants and its associated pipe network in Liaoyang City.
• Singapore container shipping firm Neptune Orient Lines has entered into exclusive talks for acquisition with France's CMA CGM SA, the world's third-largest shipper by capacity.
• KS Energy Group announced that a joint venture between PT Atlantic Oilfield services and PT Java Star Rig has won a contract for KS Java Star jack-up drilling rig worth US$2.8 million ($4 million).

GLOBAL FACTORS AND WORLD INDICES:

• China stocks ended lower, with the telecoms sector leading declines and as investors remained cautious ahead of a fresh batch of listings.The largest listed companies fell 0.6 percent, while the Shanghai Composite Index lost 0.5 per cent.
• Oil extended its decline as Venezuela predicted prices may drop as low as the mid-US$20s a barrel unless the Organisation of Petroleum Exporting Countries (Opec) takes action to stabilize the market.
• The yuan fell to a three-month low as the central bank weakened the currency's reference rate amid a dollar advance and on concern China will allow a decline to help its economy.
• The euro weakened toward a seven-month low after futures traders added to bearish bets and European Central Bank encouraged speculation.
• Malaysia's ringgit led losses in Asia on speculation as rally was overdone given that oil prices remain depressed and China's economy is still slowing.The ringgit climbed 2.1 per cent in the five days through ,rising along with other regional currencies after the Federal Reserve indicated it will increase interest rates gradually.
• Growing confidence that the US will raise interest rates next month boosted the dollar in Asia.US stocks capped their best week this year as investors digested growing signs the Federal Reserve thinks the world's top economy is srong enough to handle a rate rise next month.
• Iron ore price will drop below U$40 a metric ton before year-end, and trade in the US$30s in 2016 as demand in China sputters.
• Europe's main stock markets fell at the start of trading, with London's benchmark FTSE 100 index down 0.7 per cent to 6,293.27 points, awaiting regional data.
• Hong Kong shares fell, taking cues from weak mainland markets and as investors braced for a likely rise in US interest rates next month.The Hang Seng index fell 0.4 per cent, to 22,665.90, while the China Enterprises Index lost 0.7 per cent, to 10,229.43 points.
• SINGAPORE inflation eased at -0.8 per cent, mainly due to the lower costs of oil-related and retail items.This meant core inflation, which excludes the costs of accommodation and private road transport, moderated as well to 0.3 per cent - lower than the previous month's 0.6 per cent.

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STI COUNTER SPECIFIC NEWS WITH GLOBAL FACTORS AND WORLD INDICES

STI MARKET REVIEW :

SINGAPORE shares opened higher on Thursday.The benchmark Straits Times Index rose 26.91 points or 0.93 per cent to 2,912.99. 

following Wall Street's gain on expectations the Federal Reserve would be confident enough about the US economy to raise rates in December. STI closed33.8 points or 1.17% higher and came off from its intra-day peak of 2932.78 and low of 2906.86.

LOCAL BOURSE

Singapore equities climbed in line with gains seen in most other Asian bourses.The US Federal Reserve has also signalled a potential interest rate hike in December following which the market had mixed sentiments towards gaining. 

MARKET FORECAST

STI is expected to consolidate in next trading session. Investors are still waiting for positive trend , but market is not showing positive trend. If STI break 2940 then it may take positive side.

STI COUNTER SPECIFIC NEWS

• Sembcorp Marine announced last evening that it has won a contract from a unit of Modec Inc. to build a floating storage and offloading vessel.It reported earlier that one of its customers has announced the cancellation of a US$214 million ($304 million) contract for a drilling rig.
• Linc Energy revealed that it has entered into a confidentiality, due diligence and exclusivity agreement with an Australian company in relation to its shale oil assets.The counter party has commenced due diligence in accordance with the agreement but no formal negotiations regarding the sale of the SAPEX assets have been held at this time.
• Viva Industrial Trust announced plans to raise a total of $110 million through a private placement and preferential offering of its units.It will sell 101.1 million new stapled securities to its existing holders at $0.715 each in a ratio of one new unit for every seven held. The preferential offer is expected to raise $72.3 million.
• First Reit is about to acquire stake in Indonesian hospital and mall for S$70m.

GLOBAL FACTORS AND WORLD INDICES:

• Federal Reserve officials continued to flag December as a likely time for interest rates to rise after seven years near zero, with two expressing confidence they will be able to pull off a rate hike smoothly despite fears of an abrupt market reaction
• Wall Street stocks marched higher, greeting US Federal Reserve meeting on minutes that suggested a likely interest rate increase in December.
• US dollar dipped against the euro after the minutes of the Federal Reserve's October policy meeting reinforced expectations of an interest rate hike next month.Most participants of the Federal Open Market Committee anticipated the US economy would be strong enough in December to weather the first rate hike in over nine years.
• Asian stocks and emerging market currencies rallied after minutes from the Federal Reserve showed growing confidence in the US economy, ramping up the chances of a December interest rate hike.
• Commodity markets are in worse shape than in 2009, and is trading with more risks.Oil, copper and coal are trading around their lowest levels since the global financial crisis.
• Oil prices rose in Asian trade on Thursday as Europe struck back against the Islamic State (IS) group after the Paris attacks and after a mild rise in US stockpiles.US economy also lifted confidence, with most markets in Asia advancing following a rally on Wall Street.
• Gold may become a three-figure commodity once again after holding above US$1,000 an ounce ($1,420 an ounce) for the past six years.Bullion may slide below the level in the first half of 2016 after the Federal Reserve raises rate and the dollar gains.
• China stocks ended higher with a sharp rebound in small-caps offsetting the drag from property shares and investor caution ahead of a flurry of new listings.The blue-chip CSI300 index rose 1.6 per cent, to 3,774.97, while the Shanghai Composite Index gained 1.4 per cent, to 3,617.06 points.
• Tokyo stocks rose 1.07 per cent as investors weighed the Bank of Japan's decision to keep its monetary easing programme unchanged, pushing up the yen against the dollar.The Nikkei 225 at the Tokyo Stock Exchange rose 210.63 points to 19,859.81.
• Shares in Hong Kong climbed more than one per cent in opening trade after minutes from the Federal Reserve's October policy meeting showed board members had greater confidence in the US economy.The benchmark Hang Seng Index rose 1.06 per cent, or 234.31 points, to 22,422.57.

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Singapore Stock Market: STI Technical Analysis Outlook with Forecast

STI MARKET REVIEW :

SINGAPORE shares opened higher on Thursday.The benchmark Straits Times Index rose 26.91 points or 0.93 per cent to 2,912.99.

 following Wall Street's gain on expectations the Federal Reserve would be confident enough about the US economy to raise rates in December. STI closed33.8 points or 1.17% higher and came off from its intra-day peak of 2932.78 and low of 2906.86.

LOCAL BOURSE

Singapore equities climbed in line with gains seen in most other Asian bourses.The US Federal Reserve has also signalled a potential interest rate hike in December following which the market had mixed sentiments towards gaining.
MARKET FORECAST

STI is expected to consolidate in next trading session. Investors are still waiting for positive trend , but market is not showing positive trend. If STI break 2940 then it may take positive side.

NEWS

• Sembcorp Marine announced last evening that it has won a contract from a unit of Modec Inc. to build a floating storage and offloading vessel.It reported earlier that one of its customers has announced the cancellation of a US$214 million ($304 million) contract for a drilling rig.
• Linc Energy revealed that it has entered into a confidentiality, due diligence and exclusivity agreement with an Australian company in relation to its shale oil assets.The counter party has commenced due diligence in accordance with the agreement but no formal negotiations regarding the sale of the SAPEX assets have been held at this time.
• Viva Industrial Trust announced plans to raise a total of $110 million through a private placement and preferential offering of its units.It will sell 101.1 million new stapled securities to its existing holders at $0.715 each in a ratio of one new unit for every seven held. The preferential offer is expected to raise $72.3 million.
• First Reit is about to acquire stake in Indonesian hospital and mall for S$70m.

GLOBAL FACTORS AND WORLD INDICES:

• Federal Reserve officials continued to flag December as a likely time for interest rates to rise after seven years near zero, with two expressing confidence they will be able to pull off a rate hike smoothly despite fears of an abrupt market reaction
• Wall Street stocks marched higher, greeting US Federal Reserve meeting on minutes that suggested a likely interest rate increase in December.
• US dollar dipped against the euro after the minutes of the Federal Reserve's October policy meeting reinforced expectations of an interest rate hike next month.Most participants of the Federal Open Market Committee anticipated the US economy would be strong enough in December to weather the first rate hike in over nine years.
• Asian stocks and emerging market currencies rallied after minutes from the Federal Reserve showed growing confidence in the US economy, ramping up the chances of a December interest rate hike.
• Commodity markets are in worse shape than in 2009, and is trading with more risks.Oil, copper and coal are trading around their lowest levels since the global financial crisis.
• Oil prices rose in Asian trade on Thursday as Europe struck back against the Islamic State (IS) group after the Paris attacks and after a mild rise in US stockpiles.US economy also lifted confidence, with most markets in Asia advancing following a rally on Wall Street.
• Gold may become a three-figure commodity once again after holding above US$1,000 an ounce ($1,420 an ounce) for the past six years.Bullion may slide below the level in the first half of 2016 after the Federal Reserve raises rate and the dollar gains.
• China stocks ended higher with a sharp rebound in small-caps offsetting the drag from property shares and investor caution ahead of a flurry of new listings.The blue-chip CSI300 index rose 1.6 per cent, to 3,774.97, while the Shanghai Composite Index gained 1.4 per cent, to 3,617.06 points.
• Tokyo stocks rose 1.07 per cent as investors weighed the Bank of Japan's decision to keep its monetary easing programme unchanged, pushing up the yen against the dollar.The Nikkei 225 at the Tokyo Stock Exchange rose 210.63 points to 19,859.81.
• Shares in Hong Kong climbed more than one per cent in opening trade after minutes from the Federal Reserve's October policy meeting showed board members had greater confidence in the US economy.The benchmark Hang Seng Index rose 1.06 per cent, or 234.31 points, to 22,422.57.

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Singapore Stock Market Technical Analysis & Market Forecast

The benchmark Straits Times Index STI opened 8.78 points or 0.3 per cent lower at 2,908on Wednesday. STI came off from its intra-day peak of 2909.45 and low of 2884.03. STI closed lower to 30 points or 1% at 2890.68
LOCAL BOURSE

Singapore shares opened lower as investor sentiments were dimmed by the 16-year low in commodity prices.The investors have mixed sentiments as they are awaiting the detailed report of GDP which will be released Wednesday next week.

MARKET FORECAST

Asian stock markets are expecting to fall amid fears that the terror attacks in Paris would hurt Europe’s economic recovery. STI has taken a support of 2885 we are expecting it will go more down if it break support. Technical indicator also not supporting the STI market.

NEWS

• Shares in Neptune Orient Lines (NOL), buoyed by news of a potential acquisition by CMA-CGM or AP Moeller-Maersk,gained 18% since it reported a 3Q loss of US$96 million.
• Sembcorp Marine is down 2.2% at $2.20 after a customer cancels a US$214 million ($305 million) contract to build a drilling rig.
• Wilmar is trading down 1.0% as it is stuck in a trading range until it can improve its return on equity any further.Wilmar's management emphasised achievements in scale, distribution, vertical integration and potential to capture a share of the branded staple food market in Asia, but remains skeptical.

GLOBAL FACTORS AND WORLD INDICES:

• Signs of possible inflation gains in the United States helped boost the dollar to its highest level against the euro since April.The dollar rose to US$1.0644 per euro, and was slightly higher against the yen but fell against British pound.
• US stock indexes opened higher as better-than-expected earnings from Wal-Mart and Home Depot allayed fears of a retail slowdown after last week's sharp selloff in the sector.
• Singapore Exchange Ltd will open a dark pool for bonds entery for the institutional fixed-income for the first time next year.SGX is seeing a business opportunity in offering a platform for fixed income as regulatory changes prompt global investment banks to scale back in this segment.
• Major European shares emerged, while US stocks held their gains from the prior session as investors continued to show resilience after Friday's deadly terror attacks in Paris.The majority of stocks globally remain unfazed by last week's terrorist attacks in Paris.
• Tokyo's benchmark stock index closed flat as investors await the outcome of a two-day central bank meeting for fresh trading cues.The Nikkei 225 at the Tokyo Stock Exchange edged up 0.09 per cent, or 18.55 points, to 19,649.18.
• China stocks fell roughly 1 per cent as a surge in property shares in the wake of encouraging home price data was offset by slides in many other sectors as investors took profits.The market has rebounded more than 25 per cent from the low hit during the summer rout, but selling pressure is increasing as China will soon resume initial public offerings and many investors remain worried about the economy's health.
• Oil prices rebounded in Asia but buying sentiment remained sluggish owing to supply glut woes and a strong dollar.Traders are waiting for the release of report on commercial stockpiles in the world's top oil consumer which is expected to show an increase and further confirm the oversupply.
• Gold was down another $3 in the Asian session,showing that the speculators are fearless. Traders are counting down the days to the Federal Reserve meeting in December which is impacting global prices of gold as gold gains during global political stress has been moving just the opposite.
• Hong Kong stocks slipped, taking cues from weak mainland markets which remained fragile, amid lingering anxiety over terrorism in the wake of Friday's deadly attacks in Paris, falls in global commodity prices, and the prospect of United States interest rates rising soon.
• Commodities like oil, copper and coal are trading around lowest levels since the global financial crisis putting growing economies in concern.

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Singapore Market Review: STi Technical Analysis & Forecast

Singapore shares opened higher following the rally on Wall Street overnight, in the wake of the Paris attacks. The benchmark Straits Times Index rose 19.68 points or 0.67 per cent to 2,935.41 in early trading on Tuesday. And closed lower to 1.4 points or .05%. STI came off from its intra-day peak of 2940.86 and low of 2910.17

LOCAL BOURSE

Singapore shares opened at high and consolidated the market after the deadly Paris attacks.The October contraction was largely due to a 7.4% drop in exports of Integrated circuits (ICs), a 32.2% decline in parts of ICs and a 12.2% reduction in parts of personal computers.The exports are likely to stay weak for rest of the 2015.

MARKET FORECAST

STI is expected to consolidate with positive sentiments. It is expected to go upto 2995 If it breaks its resistance of 2945, it might go up to 2995. STI has its support at 2880. Investor’s sentiment are positive as today market show positive sentiment.

STI COUNTER SPECIFIC NEWS

• AusNet Services has posted 1H16 earnings of A$374.5 million ($377.7 million) compared to losses of A$4.9 million.Revenue for the six months increased 10% y-o-y to A$1.1 billion.
• SMRT Corp was fined $21,396.16 for not meeting the second-year standard for the percentage of taxis on the roads during peak period in February.
• Triyards Holdings has extended its product range to include escort tugs to meet the demands of new client.The contract is worth some US$12.8 million ($18.2 million) to build four RA star 3400 Azimuth Stern Drive Tugs.

GLOBAL FACTORS AND WORLD INDICES:

• Crude prices pushed higher after US-led coalition jets targeted the Islamic State group's oil operations in retaliation following the deadly attacks on Paris.The gains were not whole-hearted; early weakness in the market came after Japan, a major importer, reported a second straight quarter of economic contraction.
• Wall Street had its strongest session in three weeks , with sizeable gains in energy shares as investors bet Friday's deadly attacks in Paris would have little long-term impact on the US economy and corporate earnings.
• The euro hit a seven-month low against the US dollar after a key European Central Bank reinforced expectations for further monetary easing in emerging market currencies.
• Tokyo's benchmark index closed more than 1 % higher on a weaker yen,.The Nikkei 225 jumped 1.22 per cent, or 236.94 points, to 19,630.63.
• After a solid performance in morning trade, China stocks lost momentum and ended flat as small caps slumped on profit-taking, reflecting how market sentiment remained fragile.
• Singapore's non-oil domestic exports dipped 0.5 per cent ,after a 0.3 per cent rise, due to a drop in electronic NODX which outweighed the increase in non-electronic NODX.
• Hong Kong stocks rose roughly 1 per cent, reflecting strength in most Asian markets after an overnight rally in Wall Street signaled receding anxiety from Friday's deadly attacks in Paris.
• European stocks rose sharply in opening trade, as investors continued to show resilience after Friday's deadly terror attacks .
• Revenue at the world's 10 largest investment banks is on course to decline again in 2015 by two percent to US$148 billion compared to a year ago, although a strong showing in equities will limit the fall.It followed a weak third quarter, when revenue slipped by 8 per cent.
• Gold sank back towards five-year lows as the downward impact of a firmer U.S. dollar and weaker demand in major gold buyers weighed on prices.
• Expectations are growing that the United States will hike interest rates next month, which has pushed the dollar to its highest in half a year against a basket of currencies, making precious metals more expensive for holders of other currencies.

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Singapore Stock Market: STI Technical Analysis & Forecast

STI MARKET REVIEW :

The benchmark Straits Times Index (STI) opened 29.64 points or 1.01 percent lower at 2,896.04 on Monday and ended higher to -9.9 points or 0.34%. STI came off from its intra-day peak off 2923.94 and low 2885.60.  Sares opened lower on Monday morning, as Asian markets declined on jittery investor sentiments after Islamist militants launched coordinated attacks across Paris.

LOCAL BOURSE

The market started at a low after the news of deadly attack in Paris.The Straits Times Index now rests just above the 2,960 and has rebounded after the fall .The global forecast is flat. Morning sentiment was weak and stocks reversed early losses and the market regained its footing after being hit .

MARKET FORECAST

We are expecting STI will be positive because opening of the market was gap down but it filled the gap and if cross high i.e. 2924 then it will be positive for some days.

STI COUNTER SPECIFIC NEWS

• SEMBCORP Marine, provider of cruise ship repair, refurbishment and conversion work, successfully upgraded the Pacific Eden and the Pacific Aria at its Admiralty yard.
• Singapore Post has restructured its organisation into four areas of operations after making several investments recently,after the acquisitions of Trade Global Inc. and Jagged Peak.
• Singapore Press Holdings' total newspaper circulation, including print and digital editions, rose 4.3% y-o-y in FY2015,according to the company's annual report..

GLOBAL FACTORS AND WORLD INDICES:

• Asian stocks fell to six-week low,emerging-market stocks declined and currencies weakened as the terror attacks in Paris spurred a selloff in riskier assets.
• China is able to maintain a medium to high economic growth rate and expects economy to grow at around 7 per cent this year after a downfall.
• Tokyo's benchmark stock index ended one per cent lower after data showed Japan's economy slipped back into recession.The Nikkei 225 at the Tokyo Stock Exchange slipped 1.04 per cent, or 203.22 points, to 19,393.69, while the broader Topix index of all first-section shares closed down 0.90 per cent, or 14.30 points, at 1,571.53.
• Oil prices climbed in Asia on geopolitical tensions sparked by the deadly terror attacks in Paris but the global crude supply glut is likely to restrict any gains.
• Japan's economy contracted in the third quarter on sluggish business investment.Gross domestic product declined an annualised 0.8% in the three months.
• The euro fell against its major peers in Asia as dealers shifted back to safer investments after the deadly weekend terror attacks in Paris reinforced concerns about the impact on the already struggling eurozone economy.
• US Treasury Secretary has urged Japan to offer fiscal support to its economy to ensure it returns to growth driven by domestic demand.
• China’s yuan is poised to enter the big leagues of global currencies.IMF have recommended the yuan be included in the fund’s Special Drawing Rights reserve-currency basket, alongside the US dollar, euro, pound and yen.
• Indonesia posted its 11th straight monthly trade surplus, which should guarantee its first annual surplus since 2011 but also shows how weak imports remain.
• China stocks reversed early losses and ended higher, as the market regained its footing after being hit by anxiety stemming from the deadly attacks in Paris.Morning sentiment was also weak also because regulators tightened margin financing requirements over the weekend.

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CHINA AVIATION OIL(S) CORP LTD.: COMPANY OVERVIEW

TLV Holdings Limited was incorporated in Singapore in 1997 under the name "TLV Holdings Pte. Ltd.". And later changed its name to "TLV Holdings Limited".  It engages in the wholesale and retail sale of jewelry in Singapore also provides pre-owned jewelry and watch pawn broking and retailing services. It provides the after-sales services to customers like repairing and engraving, and customization works like setting of loose diamonds, alteration of ring sizes and plating of jewelry. TLV also participates in exhibitions and sells jewelry in the United States, Europe, the Middle East, East Asia, and Southeast Asia. It consists of a retail network of approximately 19 retail outlets under the brand names of Taka Jewellery and Lovis Diamonds; and 2 pawnshops in Yishun and Serangoon Road.

FINANCIAL VIEW

• The ratio of asset and liability is increasing as y-o-y figures are considered.
• The net income is continuously increasing, as well as Gross Profit is also increasing.

STOCKS TECHNICAL:

SGX Symbol	42L	Currency	SGD
Last Done	0.590	Volume(‘000)	21950
Day’s Range	0.590-0.590	52Weeks’ Range	0.50-0.90

Weekly Chart

S1	S2	R1	R2
0.158	0.138	0.199	0.215

TECHNICAL INDICATORS:

Daily Chart: It is a relatively new counter with strong fundamentals and has recently started to move in an uptrend with good volume. Fibonacci Fan Tool also suggest that if it moves beyond the level of 0.170 it will go upto 0.200 to 0.215 in short to mid term. Moreover, the bollinger bands rule is also suggesting its continue uptrend in the coming few days. With minor corrections if any.

Weekly Chart: In weekly chart also it can be seen that if 0.170 is crossed the next resistance level will be at 0.215.

Our VIEW:

Overall Trend: Overall trend seems to be Bullish in short to medium term with some minor corrections, if any.
Short term View: Bullish above 0.170 , with support at 0.158.

Long term View: Bullish above 0.200 , with support at 0.170.

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COMPANY OVERVIEW: Federal International (2000) Ltd

Federal International (2000) Ltd distributes and provides flow-line control products and services to the oil and gas, power, petrochemical, and pharmaceutical industries. The Company also distributes oilfield engineering materials, provides fire protection and detection systems, distributes electrical products, and provides information technology (IT) services.

Return on Assets	10.43
Total Equity	63.73
Total Market Cap	S$ 42.2 mm
DIVIDEND INDICATED GROSS YIELD	NA

FINANCIAL VIEW:

The Market Capitalization and positive NAV indicate the overall growth of the company which is increasing year on year.

STOCKS TECHNICAL:

SGX Symbol	BDU	Currency	SGD
Last Done	10.310	Volume(‘000)	182
Change	+0.010	% change	3.33%
Day’s Range	0.300-0.310	52 Weeks’ Range	-

Technical Indicators and Recommendation

Technical indicators are supportive for Federal International; it may be give the breakout of upper band with good volume. So if we trade in big quantity then we can earn good profit.

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Singapore Stock Exchange - STI Technical Analysis & Forecast 5-Nov

STI MARKET REVIEW :

Singapore’s benchmark Straits Times Index shares traded lower on Thursday, as US Federal Reserve chair Janet Yellen's comment that a December interest-rate hike remains a "live possibility" continued to sap trading. and ended 16.83 points or 0.55% lower to 3023.65. STI came off from its intra-day peak of 3043.85 and low of 3029.44.
Singapore equities inched lower at noon on Thursday, amid mixed trading in other Asian bourses ahead of pertinent US nonfarm payroll figures on Friday.
LOCAL BOURSE

Singapore’s moneylenders' credit bureau will begin operations next year. The Ministry of Law (MinLaw) will require all licensed moneylenders to provide information of their loans and the payment behaviour of their customers to the bureau.

Life insurance business in Singapore climbed 15 per cent to S$813 million in total weighted new business premiums in the third quarter of 2015.
MARKET FORECAST

STI is expected to consolidate within the range of 3045 - 3010. It has its support at 3000 and resistance at 3045. If it breaks thhis resistance it might go up to 3075. Investor’s sentiment are cautious over the statement made by Jennet Yellen increasing expectation to raise US interest rate in December and over US nonfarm payroll figures to be released on Friday.

STI COUNTER SPECIFIC NEWS

• Oil and gas infrastructure services firm Rotary Engineering reported net profit of S$6.3 million for the three months ended Sep 30, 2015, down 42 per cent from S$10.9 million the same quarter a year ago. Revenue fell to S$60.3 million from S$172 million a year ago, a decrease of 65 per cent.
• Halcyon Agri turned around a year-ago loss to post a US$47,000 net profit in the third quarter on the back of its newly acquired trading business, the rubber producer announced on Wednesday after the market closed.
• Parkway Life Real Estate Investment Trust (PLife Reit) on Thursday posted a 15.6 per cent year-on-year rise in third-quarter distributable income to S$20.3 million, or a distribution per unit (DPU) of 3.36 Singapore cents.

GLOBAL FACTORS AND WORLD INDICES:

• Hong Kong shares finished flat on Thursday, after a rally in China's stock market offset losses on the Federal Reserve's message of a possible "liftoff" in US interest rates in December. Hang Seng index was unchanged at 23,051.04.
• London's stock market fell at the start of trading Thursday as investors looked ahead to the Bank of England's latest interest rate decision and inflation forecasts. In the eurozone, the Frankfurt and Paris indices rose slightly.
• China's stocks extended the gains on Thursday as investors jumped into blue-chip shares, driving trading volume to its highest in two-and-a-half months. CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 2.1 per cent, to 3,705.97, while the Shanghai Composite Index gained 1.9 per cent, to 3,522.82 points.
• Japanese stocks closed near a 10 week high on Thursday as a weaker yen boosted prospects for exporters, and corporate-earnings and dividend related announcements stoked share buying. Nikkei share average gained 1 per cent to end the day at 19,116.41, its highest close since August 28.
• South Korean shares and won lost ground on Thursday after comments from Federal Reserve Chair Yellen bolstered expectations that US interest rates could be raised as early as December. Korea Composite Stock Price Index (KOSPI) trimmed early losses and closed down 0.2 per cent at 2,049.42 points.
• Australian shares closed lower on Thursday with bank stocks providing the biggest drag. National Australia Bank, which traded ex-dividend, ended 4.5 per cent lower, while the other major banks were down between 0.5 per cent and 1.0 per cent. S&P/ASX 200 index fell 0.9 per cent, or 49.29 points, to 5,193.00.
• Major Asian markets defied a negative lead from Wall Street on Thursday, with Shanghai performing especially strongly and Japan Post shares soaring again in Tokyo.
• Gold held near a one-month low on Thursday and looked likely to drop below the US$1,100-an-ounce level after Federal Reserve Chair Janet Yellen bolstered market expectations for a US interest rate hike in December.
• Dollar held steady in Asia on Thursday after US central bank chief Janet Yellen suggested that a December US interest rate lift-off was still on the table.

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