Singapore: STI Index (.STI) Banks close lower but stocks related to healthcare outperform market

Singapore: STI Index (.STI) Banks close lower but stocks related to healthcare outperform market

Asian equity markets continued their slide to start the week, with investors keeping a close eye on the fast-spreading coronavirus.

New cases of infection within China have slowed in the past week, but Mr Stephen Innes, AxiCorp’s chief market strategist, noted that markets remain extremely concerned about an escalation outside of China, and this is holding back risk-friendly activity.

Singapore’s Straits Times Index opened the week 1.3 per cent lower, but managed to claw back some of those losses to end yesterday’s session at 3,163.15, down 0.6 per cent.

Trading volume in Singapore was 1.59 billion securities, 34 per cent over last year’s daily average. Total turnover was $1.07 billion, in line with last year’s intra-day mean. Decliners trumped advancers 266 to 160, with 13 of the benchmark’s 30 counters ending in the red.

Medtecs International was the bourse’s most-traded counter yesterday, adding 7.7 per cent to hit 11.1 cents; 263.2 million shares changed hands. Like Medtecs, the iEdge SG All Healthcare Index, which tracks all healthcare-related stocks in the Singapore market, outperformed the market, adding 6.21 points or 0.4 per cent to reach 1,440.35.

The local banks closed lower. DBS Group Holdings fell 0.8 per cent to $25.11, OCBC Bank dropped 1.3 per cent to $10.72, while United Overseas Bank finished at $25.57, losing 1.5 per cent.

Food and beverage player ThaiBev, trading ex-dividend since Feb 7, edged down 1.3 per cent to 75 cents after CLSA downgraded it on near-term earnings pressure from its Thailand and Vietnam businesses.

Technical Indicators

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 3,202.87.

The projected upper bound is: 3,223.12.

The projected lower bound is: 3,102.19.

The projected closing price is: 3,162.65.

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 22 black candles for a net of 3 white candles.

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 64.6543. This is not an overbought or oversold reading. The last signal was a sell 0 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 42.27. 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 buy 4 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 -68. This is not a topping or bottoming area. The last signal was a buy 4 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 sell 13 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed down -18.330 at 3,163.150. Volume was 15% below average (neutral) and Bollinger Bands were 68% wider than normal.

Open     High      Low     Close     Volume___
3,142.4703,173.3203,137.8103,163.150 203,859,808
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 3,173.74 3,214.30 3,213.40
Volatility: 21 12 12
Volume: 275,029,120 216,267,824 226,670,400

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 1.6% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 9 periods.

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