STI Technical Analysis - 16 Sept, 2015

STI Market Review

• Singapore shares opened marginally lower on Tuesday with the benchmark STI falling 16.75 points or 0.58 percent to 2854.72 and ended 29.53 points or 1.03% lower to 2837.14. 

• STI came off from its intra-day peak of 2857.14 and low of 2837359. Top LosersScrip Name CMP%change NOBLE 0.46-3.16JSH USD 26.54-3.1 CITYDEV 7.98- 2.44 JMH USD 46.21-2.2SGX7.45-1.84 Singapore stocks traded lower at noon on Tuesday. 

• Apart from a smattering of small-cap news, there was little to drive trading. Weakness in China and Hong Kong that followed an overnight slump on Wall Street as well as a drop in the Dow futures contract that indicated a soft Tuesday for the US market all added up to weigh on sentiment in STI.

Market Forecast

• STI is expected to take side ways trend. It has broken its support level of 2860, its next support level is at 2800. If it breaks this level it is expected to go down to level of 2830, it has its resistance at 2870. 

• Investor sentiment remains cautious over the pending FED decision to increase the interest rate and concern over the chances of decreasing domestic consumtion due to degraded air quality in Singapore.

Market Highlights

• Singapore shares opened higher with, the benchmark Straits Times Index was up 26.68 points, or 0.94 per cent, at 2,868.62.

• Asian shares up, US bond yields jump before Fed.

• SGX has formed three independent committees to advise the market regulator on listing, disciplinary and appeal matters.

• Hyflux alongwith its partner Mitsubishi Heavy Industries (MHI) are chosen by the Singapore government to build a new waste-to-energy (WTE) plant at Tuas South Avenue 3.

• CapitaLand has announced its seventh residential project in Vietnam.

• Rotary Engineering is fighting a lawsuit in the High Court of Singapore.

• China's move to have a more market-determined yuan should be welcomed.

• World Bank economists have warned Fed hikes may be bumpy for emerging markets.

• GE2015 has assured Singapore's future beyond SG50.

• China has taken aim at automated trading in commodities futures.

• Oil prices went up after dip in US crude production.

• Brent oil contango is widest in three months as surplus has piled up.

• Singapore property curbs not likely to be eased anytime soon as per analysts.