STI Technical Analysis - 26 Nov, 2015

STI Market Review

• Singapore shares opened marginally lower on Wednesday as the Straits Times Index (STI) dipped 0.48 point, or 0.02 per cent, to 2,923.01. and ended 31.91 points or 1.09% lower to 2851.25. 

• STI came off from its intra-day peak of 2928.42 and low of 2891.58. Top LosersScrip NameCMP%changeSIA ENGINEERING3.58-2.98 GENTING SING0.775-2.52KEPPEL CORP6.7-2.05GLOBAL LOGISTIC2.09-1.88HPH TRUST USD0.53-1.85 

• Share prices in the local bourse finished on a low note with the key Straits Times Index falling 32 points or 1.09 per cent to 2,891.58.Jitters over geopolitical tension after Turkey shot down a Russian fighter jet kept investors on the sidelines across the regional markets.

Market Forecast

STI is expected to consolidate within the range of 2880 - 2840. STI has the resistance at 2840 and has its support at 2880.If it breaks this level it is
expected to go down till 2850. Market sentiment are cautious over the Fed decision in next month over the hike of U.S. Interest rate and due to geopoilitical tension between Turkey and Russia.

Market Highlights

• Singapore share prices opened a marginal 0.3% higher, with the STI up 8.65 points to 2,900.23, following the Wall Street gains.

• KLW has withdrawn its action filed against Michael Chan Ewe Teik for the repayment of S$7 million.

• PSL Holdings has acquired an approximately 49% stake in Indonesia-based marine logistics player PT Momentum Indonesia Investama.

• KS Energy acquired the 20% stake in Ocean Offshore Engineering for S$2.34 million. 

• Cordlife is currently in discussions with various parties on opportunities relating to acquisitions, divestment and joint ventures.

• Ministry of Trade and Industry in Singapore has announced to extend the block exemption order for liner shipping agreements for another 5-yrs until Dec 31, 2020.

• Businesses in Singapore feels that the government initiatives have become increasingly business friendly.

• Oil prices ended higher after a US inventory report indicated increased petroleum supply, but a separate report showed fewer drilling rigs in service.

• Indonesia : new Opec member which surprisingly likes lower oil prices.

• Gold gained on a softer dollar and heightened tensions after Turkey shot down a Russian warplane, but the rally was limited due to expectations of a US rate hike next month. 

• Euro fell against most major currencies on expectations of further European Central Bank monetary stimulus.