STI Technical Analysis - 02 Sept, 2015

STI Market Review

• Singapore shares opened 0.88 points higher at 2915.53 despite overnight weakness in US equities,and ended 38.67 points or 1.32% lower to 2882.77. STI came off from its intra-day peak of 2930.19 and low of 2878.11. 

• Top Losers Scrip Name CMP %change NOBLE 0.52-4.59O LAM INTL 1.985-4.11 CITYDEV 8.5-3.3 GENTING SING 0.745-3.25 GOLDEN AGRI-RES 0.305-3.17 A 200-point plunge in the Dow Jones Industrial Average's futures contract on Tuesday reminded players that may be markets have not bottomed yet and dragged the STI in red by the end of the market.

Market Forecast

STI is expected to take side ways trend. Its has broken its suport level of 2907. Its next support level is at 2840. if breaks this level it is expected to go up to level of 2800, it has its resistance at 2930. 

Market sentiment still is bearish due to fear over US ineterst rate to be increased in near future and weakness seen in the global market around the world and impact of lower Industrial Average's futures contract on US market.

Market Highlights

• Singapore shares rose by 0.4 per cent, with the Straits Times Index up 11.15 points to 2,893.92 following a weak opening in Japan.

• Sunlight Group was not going through with the acquisition of Alexander Resource Ltd (has become "technically insolvent").

• Jaya Holdings has failed to acquire an oil palm and timber business.

• Singpost completed the acquisition of local self-storage facility operator Store Friendly Self Storage Group for S$12 million.

• Si2i founder BK Modi is back as a non-executive chairman.

• Jaya scraped acquisition as Dec 3 delisting deadline looms.

• Stats Chip outlook is now revised to negative; 'BB' rating is affirmed.

• Asian futures can signal more pain as rout renewed amid oil pullback.

• Greece has lifted short-selling ban on derivatives also extends for stocks.

• Dollar went down on China worries.

• Oil falls on poor China factory data.

• World's top oil trader Vitol predicts price at US$40-US$60 to 2016.

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