STI Recovers Gap of Down Week; Impact of FOMC Meeting

WEEKLY WRAP OF STI

Straits Times Index (STI) opened lower at 2832.44 on Monday and ended higher to this week by recovering the gap down at the week start by closing at 2852.84. 3 Days Free Trial Signals

STI came off from its weekly peak of 2857.39 and low of 2831.10 this week and it keep on rising in 4 consecutive working days in this week which brought which recovered the fall on the opening at the starting of this week on Monday. Wall Street's sudden slump on Thursday suggests that markets are still locked in monetary expansion mode, preferring rates to remain depressed. the impact here was rises for the Straits Times Index before and immediately after the FOMC meeting.

MARKET FORECAST FOR WEEK AHEAD

STI is expected to be in positive sentiment next week. STI has taken support near 2757 and expected to maintain this support next week as well. It has its resistance at 2941. If it breaks this resistance than it might go up to 2950.

STI COUNTER SPECIFIC NEWS

• 
  MM-2 Asia has entered into an agreement to acquire a majority stake in Millinillion, a tech start-up developing interactive solutions for digital users globally.Millinillion is a company specializing in developing Business to Consumer (B2C) mobile applications and digital interactive solutions for clients.MM-2 and Millinillion will jointly develop a series of mobile applications in data-based marketing, music and industry talent pool management.
• Marine fabrication and engineering firm Triyards seems keen to divorce from the embattled oil & gas industry this year.The company has won contracts worth US$45.5 million ($64.5 million) to build vessels that have nothing to do with oil & gas, an industry suffering falling commodity prices and order cancellations.Other firms in the sector, such as SembCorp Marine and Keppel Corp have seen their share prices suffer this year amid falling demand for their rigs and vessels.
• Q&M Dental Group (Singapore) plans to restructure its stake in Qinhuangdao Aidite High Technical Ceramic Co ahead of a possible listing of the China-based manufacturing subsidiary.As part of the restructuring, Aidite will reduce its equity capital to 23.97 million yuan from 47 million yuan.
• Golden Land Property Development shareholders have approved Frasers Centrepoint's (FCL's) proposed acquisition of 29.5% of its enlarged share capital through a 4.97 billion baht ($196 million) new capital injection.Golden Land is one of the country's leading real estate developers engaged in residential and commercial property development, as well as property management and property advisory services.
• Mencast Holdings says its energy services division has renewed its service contract with the Asian headquarter of an oil supermajor for environmental remediation services for another three years.The contract also includes the option for an extension for a further two years.Another exiting long-term contract with the same client has also been revised to include additional services and increased volumes for the remainder of its term.
• CMC Infocomm expects to report a net loss for 1H2016.The net loss was primarily due to substantial one-off professional fees incurred in relation to the initial public offering exercise when after the company was listed on the Catalist board .In addition, the group recorded an increase in overhead expenses, mainly payroll expenses due to additional headcount to support the execution of the group's expansion into new and complementary businesses in Singapore and Malaysia.Shares in CMC Infocomm closed flat at 15.1 cents.

GLOBAL FACTORS AND WORLD INDICES

• Asian shares took their cue from Wall Street and slipped on Friday, and Japanese stocks slumped after briefly jumping on the central bank's statement that it would expand parts of its stimulus programme.
• China stocks held nearly steady on Friday, capping a dramatic week that witnessed a strong relief rally in the previous session following an expected rise in US interest rates.Investors are now refocusing on economic fundamentals, with a key central government economic meeting that starts on Friday likely to offer the market fresh cues for directions.The blue-chip CSI300 index rose 0.3 per cent, to 3,767.91.
• Japanese stocks fell on Friday in a session that turned volatile after the Bank of Japan announced it would maintain its massive stimulus programme's base money target while expanding the types of assets it purchases.The benchmark index was down 1.9 per cent to 18,986.80, and had lost 1.3 per cent for the week.
• Hong Kong stocks ended Friday slightly lower, as many sectors corrected after the previous session's relief rally following the long-expected US interest rate hike.The Hang Seng index fell 0.5 per cent, to 21,755.56, while the China Enterprises Index lost 0.3 per cent, to 9,634.41 points.
• European stock markets slid at the start of trading on Friday as a rally inspired by the US interest rate hike petered out heading into the weekend break.London's benchmark FTSE 100 index dropped 0.8 per cent to 6,056.9 points .
• China's ravenous appetite for overseas assets is powering a record year for Asian dealmaking, with deal volumes in the region surpassing the US$1 trillion mark annually for the first time.Acquisitions involving companies in the Asia Pacific region rose 55 per cent in 2015 to US$1.2 trillion.Chinese buyers snapped up premier assets, ranging from the world's biggest luggage handler to Italian tire brand Pirelli & C SpA, and accounted for about half the deals from the region.
• Singdollar projected to decline most in 2016 amongst Asian currencies as the growth in Asia's developing economies will slow to 6.4 per cent next year from 6.5 per cent in 2015, with China's expansion decelerating to 6.3 per cent from 6.8 per cent. That means Asian central banks will need to further cut interest rates while the Fed gradually tightens, resulting in outflows and weaker currencies.
• The US dollar pushed higher against other major currencies on increasingly bullish sentiment about the greenback following the Federal Reserve's historic decision to lift US interest rates.
• Crude prices sank deeper in Asian trading on Friday after the US oil benchmark closed at its lowest level since February 2009 on worsening oversupply concerns and a stronger dollar.West Texas Intermediate (WTI) for January delivery was trading at US$34.77 per barrel, 18 cents off its close of US$34.95 in New York.
• Gold steadied on Friday but largely kept losses made a day earlier when the metal suffered its biggest slide in five months after U.S. interest rates were raised for the first time in nearly a decade and the dollar surged.Spot gold ticked up 0.3 percent to $1,054.40 an ounce by 0327 GMT, following a 2 percent slide in the previous session, its biggest one day slide since July. The metal is down nearly 2 percent for the week in its worst performance in six weeks.

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Singapore STI Ended Higher With Positive Sentiment in its Next Trading Session

STI MARKET REVIEW:

Singapore’s benchmark Straits Times Index (STI) opened 3.43 points higher or 0.12% on Thursday morning after the US Federal Reserve raised its short term interest after 7 years and the market ended higher to 20.26 points or 0.71 percentage higher at 2861.18. STI came off from its intra-day peak of 2868.27 and low of 2833.57. Market breadth was positive. Excluding warrants, gainers outnumber decliners 200 to 165. Get Free Trial of Trading Signals

LOCAL BOURSE

Non-oil domestic exports fell 3.3% y-o-y in November after flat growth in October.On a m-o-m, seasonally adjusted basis, NODX slipped 3.8% after October's 0.3% dip.Both the y-o-y and m-o-m figures for October have been revised: the former was earlier reported to be a 0.5% decline and the latter was a 1.1% rise.Non-oil re-exports continued to increase in November, but eased from 6.1% in October to 5.1% y-o-y,due to an expansion in both electronic and non-electronic NORX.

MARKET FORECAST

STI is expected to consolidate with positive sentiment in its next trading session. Also the market has responded positively towards the interest rate hike by Federal Reserve for the first time in nearly a decade on Wednesday. It has its support at 2829 and resistance at 2876. Investors are cautious as Singapore non-oil domestic exports fell in November but the market is expected to move with positive sentiments.

STI COUNTER SPECIFIC NEWS

• IPC Corporation is proposing a capital reduction move to return $136.467 million in cash to shareholders, or $1.60 per share.The existing cash hoard of the company came from sale of seven hotels in Japan for around JPY14.94 billion, or some $172.22 million.
• The Trendlines Group has established two new portfolio companies, Tandem Technologies and Zeev Implants, via its unit Trendlines Medical.The two new companies bring the total number of Trendlines portfolio companies to 47.Tandem Technologies aims to make the process of removing and retrieving colon polyps much more efficient and accurate, with the goal of a near 100% retrieval rate.
• EZRA Holdings has agreed to buy subsidiary EMAS Offshore's entire 12.13 per cent stake in Malaysia-listed Perisai Petroleum Teknologi for US$56 million, a 500 per cent premium to the share market value.The agreed price of US$56 million is based on the cost of EMAS's investment at inception.

GLOBAL FACTORS AND WORLD INDICES:

• Asian stock markets jumped on Thursday as investors chose to take an historic hike in US interest rates as a mark of confidence in the world's largest economy, lifting the dollar and piling on the pain for oil prices.China also allowed its currency slip for a 10th straight session to hit its lowest since June 2011. The steady decline in turn puts pressure on other Asian currencies to depreciate to stay competitive.
• The Federal Reserve hiked interest rates for the first time in nearly a decade signaling faith that the US economy had largely overcome the wounds of the 2007-2009 financial crisis.The US central bank's policy-setting committee raised the range of its benchmark interest rate by a quarter of a percentage point to between 0.25% and 0.50%, ending a lengthy debate about whether the economy was strong enough to withstand higher borrowing costs.
• China stocks rallied on Thursday as risk appetite improved after the Federal Reserve raised rates for the first time in nearly a decade, as expected, removing a major source of uncertainty about the US central bank's policy.The CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 1.9 per cent, to 3,755.89.
• The People's Bank of China set its official midpoint rate at 6.4757 per dollar, its weakest level since June 2011, and 0.2 per cent weaker than the previous fix of 6.4626.The sharply weaker yuan midpoint reflected the dollar's strength in global markets after the US Federal Reserve raised its policy interest rate overnight, traders said.
• Tokyo stocks jumped on Thursday after the US Federal Reserve hiked interest rates for the first time in nearly a decade, underscoring its confidence in the health of the world's top economy.The benchmark Nikkei 225 index at the Tokyo Stock Exchange gained 1.59 percent, or 303.65 points, to finish at 19,353.56.
• Australian shares rose 1.46 per cent on Thursday, joining a global equities rally as investors piled back into the markets after a US interest rate hike signalled confidence in the world's largest economy.The S&P/ASX 200 index rose 73.55 points to 5,102 at the close of trade, after reaching a high of 5,129.1 earlier in the session.
• Japan's exports in November fell at the fastest pace in almost three years as shipments to Asia declined in a worrying sign that weakness in overseas demand could curb economic growth. Data showed that exports fell 3.3 per cent in November from a year earlier, more than the median estimate for a 1.5 per cent annual decline.
• The US dollar rose slightly against the euro and the yen on Wednesday after the US Federal Reserve's historic move to raise interest rates for the first time in nine years.The dollar rose to US$1.0911 per euro around 2200 GMT from US$1.0930 at the same time on Tuesday. The greenback was up 0.5 per cent at 122.26 yen.
• Gold slipped on Thursday to give back some of its overnight gains, with trading choppy as the dollar surged after the Federal Reserve hiked US interest rates for the first time in nearly a decade.Gold has slumped nearly 10% this year, largely on uncertainty around the timing of the rate rise and on fears that higher rates would hit demand for the non-interest-paying metal. It had fallen to a near-six-year low earlier this month.
• Crude prices extended losses in Asia Thursday after another report showing a further increase in US stockpiles added to fears about a global glut.The under-pressure commodity suffered fresh selling on Wednesday after the US Department of Energy showed that supplies rose 4.8 million barrels.

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Bursa Malaysia; Market Review for KLCI- 11 Dec

The FBM KLCI index lost 10.71 points or 0.65% on Thursday. The Finance Index fell 0.25% to 14107.75 points, the Properties Index dropped 0.45% to 1180.61 points and the Plantation Index down 1.22% to 7358.69 points. The market traded within a range of 12.54 points between an intra-day high of 1661.19 and a low of 1648.65 during the session.

The KLCI extended its losing streak for the third day after closing lower at 1648.65 points amid overnight losses in US market. Market sentiment was muted as oil prices continued to slide.

Market forecast for KLCI:

The KLCI index is expected to end the week with bearish sentiments on the back of the week global economical outlook, technically the index had crossed the level of 1660-1657 and it can drop further in near term. 

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KLCI COUNTER SPECIFIC NEWS :

• Malaysia palm oil futures closed lower on Wednesday as traders squared positions ahead of key supply and demand data fr U.S and Malaysia.
• Country Heights Holdings Bhd (CHHB) has inked a joint venture agreement with Galaxus Corp Sdn Bhd (Galaxus) and Tan Sri Lee Kim Tiong.
• EG Industries Bhd is disposing of six parcels of unexpired leases of industrial land, measuring 6.28ha in Bandar Kuala Ketil in Kedah, for RM9 million to calcium-based chemical product manufacturer and trader Schaefer Kalk (Malaysia) Sdn Bhd.
• SP Setia Bhd,the country's biggest listed property developer by sales, is confident it can achieve its RM4 billion sales target for this year, underpinned by RM9.5 billion of unbilled sales.
• Kumpulan Perangsang Selangor Bhd’s (KPS) independent director Rosely @ Mohamed Ross Mohd Din told shareholders that the Selangor state-owned investment holding company will find a new business to invest in, after the disposal of its 90.83% stake in Titisan Modal (M) Sdn Bhd, which wholly owns the water treatment operator Konsortium ABASS Sdn Bhd.
• PUC Founder (MSC) Bhd (PUCF) has obtained the approval from Bursa Securities and the Securities Commission Malaysia (SC) for its proposed renounceable rights issue of irredeemable convertible unsecured loan stock (ICULS), with warrants to raise up to RM83.9 million.
• SCGM Bhd posted a net profit of RM4.79 million for the financial second quarter ended Oct 31,2015 (2QFY16), a 57.6% increase from RM3.04 million a year ago, helped by favourable product mix, lower fuel cost and strengthening of US dollar against the ringgit.
• Berjaya Food Bhd net profit plummeted 96% to RM6.2 million or 1.65 sen per share in its second financial quarter ended Oct 31, 2015 (2QFY16), from RM163.60 million a year ago, due to the remeasurement gain of RM158.60 million last year and foreign exchange loss.
• Sanichi Technology Bhd shares surged 18.75% in early trade today after Sanichi yesterday signed a memorandum of understanding (MoU) with German firm Protev International GmbH to form a joint venture in providing a one-stop product and service centre to all its customers worldwide in the manufacturing of plastic injection moulds and tools.
• Kimlun Corporation Bhd rose 2.08% this morning after AllianceDBS Research said renewed buying interest had emerged in Kimlun and that Kimlun had on Dec 9 traded higher to RM1.45 before closing near the day’s high at RM1.44 (up 6 sen or 4.34%).
• Transocean Holdings Bhd executive director Tan Swee Hock has voluntary resigned from his post effective yesterday after being charged by the Securities Commission Malaysia (SC) for insider trading.

GLOBAL FACTORS AND WORLD INDICES:

• A sense of unease spread across Asian stock exchanges Thursday with investors spooked by the sharp sell-off in oil sending most regional markets lower.With crude sitting around seven-year lows energy firms came under further pressure, following more losses on Wall Street.
• China shares ended lower on Thursday, giving up modest gains even after regulators reassured investors that reforms to company listings would not open a floodgate of new offerings.The CSI300 index of the largest listed companies in Shanghai and Shenzhen fell 0.4 per cent.
• Hong Kong shares weakened on Thursday, pulled lower by resource shares, as investors remained wary of falling commodity prices and ahead of a likely US interest rate rise next week.The Hang Seng index fell 0.5 per cent, to 21,704.61.
• Tokyo's benchmark stock index fell for a third straight session on Thursday as a strong yen dented exporters, and after Wall Street dropped on oil prices sinking to fresh seven-year lows.The Nikkei 225 at the Tokyo Stock Exchange sank 1.32 per cent, or 254.52 points, to 19,046.55 by the close.
• Australian shares fell 0.84 per cent on Thursday led by financials as stronger-than-expected jobs data further diminished the chances of a Reserve Bank rate cut.The S&P/ASX 200 index slipped 42.75 points to 5037.7 at the close of trade.
• Singapore GDP growth will remain lacklustre, reflecting a weaker outlook for China and Asean, as well as lower trend growth with domestic restructuring.The bank expects government measures in the property, transport and telecommunication sectors to be closely watched.
• Vehicle sales in China rose 20 per cent in November from a year earlier to 2.5 million vehicles, an industry association said on Thursday.The increase was the largest since October 2013 and compares with an 11.8 per cent rise in October and a 2.1 per cent increase in September.
• Oil prices edged up in Asia on Thursday following signs of a slight improvement in US demand but concerns that an oversupply will persist past next year kept the the commodity struggling at multi-year lows.
• The dollar eased against most rivals in Asian trade on Thursday, with commodity-linked units enjoying support from a slight uptick in oil prices, while its Australian counterpart surged on the back of a strong jobs report.
• Gold failed to log gains despite a 1.1 percent drop in the dollar index on Wednesday to its lowest in a month.

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DAILY FOREX TECHNICAL ANALYSIS REPORT

GBPUSD

The GBP/USD pair which was initially falling on Tuesday found enough support at 1.50 level to turn the things around and formed a rather positive hammer in the end. What remains to be seen is the direction it takes from here. We are currently holding no hopes of spikes rather are focusing our time on identifying selling opportunities. In our opinion, a breakdown below Tuesdays candle can also be a selling opportunity.

EURUSD

The EUR/USD pair went a notch higher on Tuesday, shooting through the hammer candle formed on the previous day. Although the sky seems to be clear but we do see a storm coming. In other words, we are going to sit this one out. 1.10 level above is going to be our flag off level. On the flip side, if we break the bottom of the hammer on Monday, we might think about entering a short position. After 1.10 level, we might set our eyes on 1.14 level, but that depends on crossing the 1.10 level first.

AUDUSD

The AUD/USD pair formed a candle possessing hammer like characteristics following an encounter with a support level that allowed it to take a U-turn. Any break above the hammer is a bullish signal and indicates an upward momentum. However, in the opposite direction it might move to 0.71 level. Australian Unemployment data would be among the figures released that would be having an impact on this pair.

USDJPY

The USD/JPY pair took a bounce on Tuesday. However, we still haven't escaped the previous consolidation area; hence we are not sure how long this bounce will go in upward direction. The markets as always are in full oscillations, hence we are looking for some decent pull back that might give a significant profit. Apart from this, there is resistance zone extending from 124 level to 125 level.

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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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