All three local banks lead charge, keeping Singapore: STI Index (.STI) in positive territory

All three local banks lead charge, keeping Singapore: STI Index (.STI) in positive territory

Singapore equities outperformed most other regional markets, some of which are showing signs of fatigue after a strong run that began in the lead-up to last Friday’s confirmation of a US-China “Phase One” trade deal.

“Equity markets are enjoying a massive finish to the year, but at some point, investors will need to kick back into Christmas mode and put some money in the bank defending profits,” AxiTrader chief Asia market strategist Stephen Innes said.

With the exception of an early session dip, Singapore’s Straits Times Index (STI) stayed in positive territory, closing yesterday’s trading at 3,209.54, adding 8.74 points or 0.3 per cent.

Asia-Pacific markets were mixed. Hong Kong, Malaysia and Taiwan posted gains. China and Japan were lower. Australia and South Korea barely moved.

Trading volume in Singapore stood at 1.30 billion securities, 9 per cent over the daily average in the first 11 months of 2019. Total turnover was $1.05 billion, just under the January-to-November daily average. Across the market, advancers trumped decliners 227 to 173. Nine of the benchmark’s 30 counters ended in the red.

Local banks did the heavylifting on the STI. DBS Group Holdings added 0.6 per cent to $25.81, OCBC Bank was up 0.6 per cent to $10.96 as United Overseas Bank finished at $26.58, advancing 1.3 per cent.

Among companies in the second line, ISOTeam dipped 2.1 per cent to 23.5 cents after revealing it intends to raise about $28.9 million through a share placement and the issuance of warrants and shares to Japanese firm Taisei Oncho. The placement will see 84 million new shares issued at $0.24 each.

“Today’s drop does not seem justified. Personally, I view this placement as positive. I will continue to monitor their progress on their contract momentum, placement completion and the acquisition of Pure Group,” remisier Ernest Lim said.

Among real estate plays, Oxley Holdings added 1.4 per cent to close at 35.5 cents. The property developer announced on Monday after market close the divestment of an office development in Dublin, Ireland for €115 million (S$173 million).

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 3,260.40.

The projected lower bound is: 3,159.16.

The projected closing price is: 3,209.78.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 25 white candles and 24 black candles for a net of 1 white candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 61.5852. This is not an overbought or oversold reading. The last signal was a buy 10 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 52.44. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 29 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 70. This is not a topping or bottoming area. The last signal was a sell 2 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 4 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed down -2.120 at 3,207.420. Volume was 33% below average (neutral) and Bollinger Bands were 54% narrower than normal.

Open     High      Low     Close     Volume___
3,205.0903,211.5103,194.9203,207.420 164,888,992
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 3,194.29 3,198.31 3,223.64
Volatility: 8 10 12
Volume: 248,762,160 272,145,824 228,349,680

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

STRAITS TIMES is currently 0.5% below its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of .STI at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .STI and have had this outlook for the last 15 periods.

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