Singapore STI Market Review & Forecast for 30 Sept

    Singapore’s benchmark Straits Times Index opened on Tuesday morning at 2,754.35 points, down 1.35 per cent or 37.57 points as overnight US losses dragged down morning trading in Asia and ended 4.0 points or 0.14% lower to 2787.90. STI came off from its intra-day peak of 22790.60 and low of 2740.36.

Singapore stocks were down midday as commodity-related companies led a sell-off over concerns of weaker raw materials prices amid China's economic slowdown.

LOCAL BOURSE

Singapore's manufacturing sector continues to be a negative in the economy in third quarter of 2015.

Singapore's full-year 2015 GDP growth to 2.2% from 2014's 2.9%. It had earlier projected Singapore's 2015 GDP growth at 2.5%.

Singapore property auction market saw S$27.6 million of deals in the third quarter of the year, more than double the S$10 million seen in the second quarter though slightly below the S$31.7 million seen a year ago.

Singapore dollar (SGD) fell through S$1.43 on Tuesday, to a fresh six-year low, on increased concerns over global growth.

Market forecast:

STI is expected to consolidate. STI has broken the support level of 2757. STI has its resistance at 2800. If it breaks this level it might go up to 2830. Investor sentiments are cautious over the early rate hike of U.S. By FED and slowdown of china’s economy.

STI LEVELS
Support 1	2733
Support 2	2715
Support 3	2700
Resistance 1	2806
Resistance 2	2830
Resistance 3	2860

STI COUNTER SPECIFIC NEWS

• Croesus Retail Trust is acquiring Torius Property, a retail property located in Fukuoka, Japan, for a purchase consideration of JPY8 billion ($95.2 million), through debt and equity financing. The consideration represents a 3.7% discount to valuation of JPY8.3 billion.
• Huationg Global, the full-service integrated civil engineering solutions provider, it has secured new civil engineering contracts worth a total of $81.3 million.
• Rex International Holdings' subsidiary, Rex International Investments (RII) will subscribe to one million new Lime Petroleum Norway AS shares at a nominal value of NOK 100 per share for a total transfer price of NOK 100 million ($16.8 million).

GLOBAL FACTORS AND WORLD INDICES:

• Hong Kong stocks tumbled 3 per cent to a two-year low on Tuesday as growing fears of a sharp slowdown in the world economy sparked heavy selling, particularly in energy and commodity related shares. The benchmark Hang Seng index fell 3.0 per cent to 20,556.60 points, its lowest close since July, 2013.
• The Nikkei 225 at the Tokyo Stock Exchange dropped 714.27 points to 16,930.84 by the close, erasing all of its gains for the year. The index is down 18 per cent since authorities shocked world markets by devaluing China's yuan currency in mid-August.
• European shares fell for the second day in a row on Tuesday as weakness in the commodities sector hit markets, though battered miner Glencore halted its slide after a bruising sell-off on Monday. The pan-European FTSEurofirst 300 index and the euro zone's blue-chip Euro STOXX 50 index both fell 1.6 per cent.
• Malaysia's ringgit fell, headed for its biggest quarterly loss since 1997, as the relatively low level of import cover afforded by the nation's foreign-exchange reserves makes the currency more vulnerable to an emerging markets selloff.
• The Reserve Bank of India (RBI) lowered the benchmark repo rate - the level at which it lends to commercial banks - to 6.75 per cent, a larger cut than expected.
• China's foreign exchange regulator is stepping up its risk controls against corruption, it said in a statement released on Tuesday via the ruling Communist Party's anti-graft watchdog.
• Indonesia will announce later on Tuesday the second installment of a stimulus package aimed at supporting the rupiah and reviving growth in Southeast Asia's largest economy.
• Oil traded below US$45 as investors await data that may signal the strength of demand in the world's two biggest consumers. Futures in New York were little changed after falling 2.8 per cent Monday as China reported industrial-company profits declined 8.8 per cent in August.