STI Singapore Weekly Outlook for 23-27 Sept. 2013

Weekly Summary:

Singapore shares edged up, and made its 7 weeks high this week above 3250 mark. After the US Federal Reserve decided to continue with its monetary stimulus programme.

Week starts with gap up opening in STI @3151.40 and then STI continuously opened with gap whole week and finally made week high above 3250 level @ 3260.14 , finally week ended @ 3237.53 with gain of 117.23 points up by 3.75% wow basis.

Macro-economic News:

Singapore’s August non-oil domestic exports (NODX) surprised a generally optimistic market consensus (+2.4% y/y) on the downside and posted a contraction of 6.2% y/y, worse than a revised 1.9% y/y contraction seen a month ago. The contraction was due to weak performance seen in both electronic exports (-9.2% y/y) and non-electronic exports (-4.7% y/y).

Market Forecast for week ahead:

• STI made its 7 week high mark in this week, in the hope of some positive new from U.S government. Also now this level STI looks Bullish if it maintains the 3200 mark.
• STI formed a big green candle, opens well above its previous candle and closed with good gain. It is a highly bullish candle, but we cannot interpret further bullishness whenever the next candle will not confirm the trend.

STI Resistance:

• STI having Resistance @ 3285 and above this level it may take resistance from 3305-3350 levels.

STI Support:

• STI having nearest support @ 3210 below this 3180-3130 will be the support area for market.

Technical Indicators:

Technical indicators are giving positive impression.