STI Weekly Analysis 12 - 16 Oct, 2015

Weekly Wrap STI

• Straits Times Index (STI) opened 29.92 or 1.07% up this weak at 2826.07 and ended 205.35 points or 6.85% higher to 2988.50 this week. STI came off from its weekly peak of 3011.63 and low of 2822.28.

• After gaining 169 points or about 6 per cent between Monday and Wednesday, ST on Thursday fell 14.78 points to 2,947.03 as it spent the day tracking the Dow futures, the latter dropping as much as 130 points at one stage. 

• Reason of downfall on thusday was due to fall in Wall Street was most likely because the US earnings season that started on Thursday iwas expected to be disappointing. However, STI gained the fall on Friday by rising by 51.5 points and ending the weak at 2998.5. STI breaks its resistance of 3000 this weak.

• Singapore Exchange's (SGX) total securities market turnover value grew 7% year-on-year (y-o-y) to $22.5 billion, despite fewer trading days in Sept 2015 as compared to the same month last year.

Market Forecast for Week Ahead

• STI is expected to be positive next weak. STI has broken its crucial resistance of 3000 and recovered the downfall of last month in last weak. 

• The positive moment in the market can be seen on the back of the minutes of the US Federal Reserve's latest meeting showed no urgency to raise interest rates. 

• STI has its next resistance at 3015, if it breaks this level next weak it is expected to go up till 3055. It has its weekly

Market Highlights

• Singapore shares opened 0.29 per cent or 8.82 points lower at 2,989.68 despite Asian stocks edging higher elsewhere in the region, consolidating recent rises on late gains in Wall Street on Friday and a rebound in the commodities complex.

• Asian stocks climbed after biggest weekly rally since Dec 2011.

• SGX is reviewing companies' compliance with CG Code.

• China Sky's non-executive chairman has resigned.

• Tee International's Q1 profit went up 23.6%.

• SIA plane had collapsed at Changi Airport gate after nose gear retracted during landing gear check.

• OKP unit has won S$12.7m JTC contract.

• Oil edged up on lower US rig count, & weaker dollar.

• IMF urgeed Japan to proceed with second sales tax hike.

• Fed should not raise interest rates just yet- as said by China Finance Minister

For more Info visit: www.capitalvia.com.sg