Singapore: STI Index (.STI) delistings expected to continue in the second half of this year

Singapore: STI Index (.STI) delistings expected to continue in the second half of this year

Singapore’s stock market has seen on average two companies a month on track to relinquish their listing status this year. This trend may not be reversing anytime soon.

The Singapore exchange tweaked the voluntary delisting rules earlier this month, shifting the power to minority shareholders. Market watchers have said bidders may have to pay higher premiums to get deals done.

Delistings are expected to continue in the second half of this year even at higher prices, according to a poll of four analysts, because the rule change doesn’t affect the persistently low valuations which continue to plague the Singapore market. The Straits Times Index is trading at one-year forward price-to-book ratio of 1.13 compared with 1.71 for the MSCI Asean Index, according to data compiled by Bloomberg.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 3,291.40.

The projected upper bound is: 3,423.26.

The projected lower bound is: 3,319.41.

The projected closing price is: 3,371.33.

Candlesticks

A black body occurred (because prices closed lower 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 32 white candles and 17 black candles for a net of 15 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 55.4264. This is not an overbought or oversold reading. The last signal was a sell 2 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 61.11. 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 12 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 115.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. 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 sell 11 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed down -4.690 at 3,368.440. Volume was 0% above average (neutral) and Bollinger Bands were 63% narrower than normal.

Open     High      Low     Close     Volume___
3,378.3603,386.6503,361.3003,368.440 209,425,408

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period     50-period     200-period
Close: 3,361.84 3,265.83 3,197.10
Volatility: 7 10 14
Volume: 185,158,448 204,651,760 212,179,216

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 5.4% above its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into .STI (mildly bullish). Our trend forecasting oscillators are currently bullish on .STI and have had this outlook for the last 26 periods.

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