STI Singapore Market Outlook for Today 07- Feb

Market forecast:

In the beginning of the week STI crossed its 3300 mark but very second day its fell badly and now traded in the range if 3260-3282.

as we mention in our previous report that STI trading in an uptrend rising channel and also above its 61.8% retracement level, and faced Resistance of 3320 levels just above the previous one 3315.

STI having support @ its previous resistance level i.e. 3240 mark which is the lower level of channel and if STI crossed this level then we can see lower levels and 3220-3195 will act as a major support zone for STI.

Support:

STI having immediate support @ 3260 level and below this level it can take support @3240-3220 will be the support zone for STI.

Resistance:

STI having immediate Resistance @3285 and above this level it may take resistance @ 3300-3315 levels.

Technical indicators:

Technical indicators are seems to overbought zone on charts.

Singapore Shares Flat - DBS Group Falls After Q4 Earnings

Singapore shares were little changed, with DBS Group Holdings Ltd underperforming the market after the bank's fourth-quarter earnings missed expectations due to weak margins.

The Strait Times Index was flat, while the MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.3 percent.

DBS shares fell as much as 2.2 percent to their lowest in nearly a week. DBS posted a net profit of S$760 million ($613.5 million) for October-December against a net profit of S$731 million a year earlier. This missed an average forecast of S$810 million, according to six analysts surveyed by Reuters.

Shares of SIA Engineering Co Ltd dipped as much as 3.6 percent to a two-week low after it reported weaker-than-expected third-quarter earnings. Some 778,000 shares were traded, 2.2 times the average full-day volume over the past 30 days.

CIMB Research said the company's third-quarter net profit was 10 percent below its forecast and 6 percent below consensus due to lower fleet and project revenue.

"This is the time to book some profits off SIA Engineering on unexciting 3Q13 results and 33 percent share price outperformance since January 2012. We believe capacity growth in Changi Airport and high hangar utilisation from airframe maintenance have been factored in," CIMB said.

CIMB said SIA Engineering's valuation was "stretched" at a price-earnings ratio of 18 times for 2013, near its peak of 19 times. But CIMB maintained its 'neutral' rating on the stock, citing the dividend yield of 4.5 percent.

Singapore Stock News - Shares Fall to Low Nearly a Week

Singapore shares fell to their lowest in nearly a week, largely in line with regional bourses, after weak data from the United States and on renewed concerns over eurozone debt crisis.

The Strait Times Index was down 0.8 percent at 3269.60, matching the fall in the MSCI's broadest index of Asia-Pacific shares outside Japan.

The fall in the Singapore market was broad-based, and the biggest decliners include property developer City Developments Ltd, which fell 2.8 percent, and Singapore Exchange Ltd (SGX), which dropped 1.5 percent.

SGX, Asia's second-largest bourse operator by market capitalization  is in talks to buy a stake in transatlantic clearing house LCH. Clearnet, betting on an increase in trading volumes for derivatives, the Financial Times reported on Monday.

STI Singapore Technical Outlook for 05-Feb 2013

Market Wrap

Singapore's benchmark index hit a 5 -year high with local banks, ahead of their earnings reports, among the top gainers.

Singapore share prices opened higher above the 3300 mark @ 3307.14 and then it made its 5 year high @ 3319.19 but after that it traded in a range and in 2nd half trading it fell below 3300 mark and made low of 3294.34 and finally closed @ 3297.37 with gain of 6.23 points up by 0.19%.

Some 3.36 billion shares, valued at S$1.74 billion were traded. Losers outnumbered gainers 279 to 257.

Market forecast:

Today STI made its 5 year high level @ 3319.19 and crossed awaited 3300 mark. But closed below this mark @ 3294.34 levels.

STI trading in an uptrend rising channel and also above its 61.8% retracement level, as we previously mention that it has an immediate resistance level @ 3315 and today STI crossed this level but not sustaining this. So for coming days if it will sustain 3315 level than we can see more upwards.

STI having support @ its previous resistance level i.e. 3240 mark  which is the lower level of channel and if STI crossed this level then we can see lower levels and 3220-3195 will act as a major support zone for STI.

Support:

STI having immediate support @ 3280 level and below this level it can take support @3260-3240 will be the support zone for STI.

Resistance:

STI having immediate Resistance @3315 and above this level it may take resistance @ 3350-3380 levels.

Technical indicators:

Technical indicators are seems to overbought zone on charts.

STI Singapore Technical Outlook for Week Ahead 04-08 Feb

Weekly wrap of STI: 

STI closed its 2 years high @ 3291.14; it’s a 3rd week in row where STI ended with gain. 

STI opens above with gap @ 3272.33 and then it made a week low @ 3259.75 and maintain itself above 3250 levels, after taking support at that level STI traded at upward direction and crossed its 2 years high and made 3293.10 mark and finally closed near the high @ 3291.14 with gain of 21.83 points up by 0.66% wow basis.

Market Forecast for week ahead: 

STI itself maintain above the 3250 mark and able to breached its 2 year high on the closing basis. It is a bullish sign for coming days.

As STI trading above its 61.8% retracement level and heading towards the 78.6% mark, in between STI having immediate resistance levels after breaching these levels STI can move towards the next level.

As  Chinese New Year is week away and traders are interested to book some profits so for coming week STI look volatile, because it is trading above the last 2 years higher level,so can face some pressure to maintain above this level and if hold itself above this than we can see the 3380 mark soon.

STI Resistance:

 STI having Resistance @ 3315 and above this level it may take resistance from 3345-3385 levels.

STI Support:

STI having nearest support @ 3260 below this 3240-3220 will be the support area for market.

Technical Indicators:

Technical indicators give the impression of being in overbought zone.MACD gives bullish cross over and RSI move above higher limit @ 71.975.

Sup 1	Sup 2	Sup 3	Res 1	Res 2	Res 3
3260	3240	3220	3315	3345	3385++