SGX Singapore : STI Techhnical Analysis & Market Forecast

STI MARKET REVIEW : Singapore share prices opened lower with the STI down 32.97 points or 1.51 per cent to 2918 and ended 42.90 points or 1.51%higher to 2886.29. STI came off from its intra-day peak of 2926.76 and low of 2808.31.

Singapore rebounded after gap down open moved in positive territory. STI recovered after a fall of 127 points on previous trading session.

STI DAY Performance:-

Open: 2809.55

High: 2926.76

Low: 2808.31

Close: 2886.29

Change(Points): +42.90

% Change: +1.51%

Volume L: 2080.70 M

Rise: 306

Fall: 145

Unch: 347

LOCAL BOURSE

Singapore is in line to make public housing furtehr affordable before elections. This is putting more pressure on the developers from plunging sales and home prices.

Prime Minister Lee Hsien Loong is boosting grants for public housing, also raising the household monthly income ceiling to qualify for new units by $2,000 to $12,000 and to $14,000.

Singapore's core inflation, which excludes private road transport and accommodation costs, will remain soft for the rest of the year despite a more than expected rise in July.

Market forecast:

STI is to takeside ways trend. It has rebounded today near its support od 2800, if it breaks this level it is expected to go further down till 2765. Concern over US interest rate to be increased is relaxed for the time being as FED has delyaed its decision towards early 2016. However, market sentiment still remains bearish over the global meltdown due to slowing growth of Chinese economy.

STI COUNTER SPECIFIC NEWS

• Kingsmen Creatives Ltd has accepted an offer from JTC Corporation to acquire about 5,251 sq m of vacant leasehold land located at Changi Business Park for a cash consideration of S$7.07 million.
• Environmental services provider 800 Super Holdings reported its net profit for the year ended June 30 nearly doubled to S$17.56 million from S$8.97 million a year ago.
• Software solutions provider Silverlake Axis has reported rise of 1% in net profit for the fourth quarter ended June 30 from a year ago to RM74.7 million.
• Other income increased significantly from RM3.2 million in a year-ago period to RM24.3 million in the fourth quarter, which the group attributed to an accounting gain of RM19.2 million on dilution of interest in an associate in China, Global InfoTech Co Ltd, following its initial public offering in May.
• National carrier SIA has bought back their own 630,800 shares from the open market at S$9.68 to S$9.92 each on Monday, totalling upto of S$6.18 million.

GLOBAL FACTORS AND WORLD INDICES:

• Asian shares tumbled today after a big decline in Chinese stocks sparked a global equities rout and increased the fear over the future outlook of the world economy. Shanghai stocks tumbled 6.41 per cent at the open, in line with the decline of previous day.
• Hong Kong stocks fell 0.67 % in early trade Tuesday, in line with fall in all other gobal indexes. Hang Seng Index fall by 142.86 points to 21,108.71 in opening deals.
• China's major stock indexes further dropped by 6% in early trade on Tuesday, continuing the decline of Monday that made Chinese exchanges suffer and destablised the world financial market around the world. This was the biggest loss that China saw after the Global financial crises 2008.
• Australian shares rebounded on Tuesday as investor took the advantage of beaten down bank stocks, on the next day where the market has seen the biggest drop in over the 6 years. S&P/ASX 200 index rose 2.7 per cent i.e., 136.0 points, to 5,137.3, the rise covered more than half ofprvious days fall i.e., 4.1% drop.
• European stocks rebounded at opening on Tuesday despite of fall in Chinese indexes. Europe’s various indexes saw recovering the previous day fall, London's FTSE-100 rose by 1.3 per cent, Frankfurt rose by 1 1.74 per cent and Paris's CAC-40 opened the day up 1.7 per cent.
• US 10-year Treasury yields declined below 2 per cent. This was seen for the first time since April, as high sell-off in stocks and commodities encouraged investor to go for the safest fixed-income assets. US government securities increased consecutively on fourth day between the concern over slowing growth in China and destabilisng the economy all over the world and has also led to delay in increase in US ineterst rate by the Federal Reserve.
• Gold was traded below a 7 week high on Tuesday as equity markets regained from continous fall also US Dollar rebounded after a high sell-off during past few trading sesisons due to fear over meltdown of Chinese economy.
• Oil declined and was traded near 6 year low after equities market and commodities saw huge selloff.