Singapore: STI Index (.STI) – Government announced a Budget which featured $5.6 billion to help firms

Singapore: STI Index (.STI) – Government announced a Budget which featured $5.6 billion to help firms

Singapore stocks rose on Wednesday (Feb 19) morning, reversing their losses from the previous day when the Government announced a Budget which featured $5.6 billion to help firms, workers and households cope with the coronavirus (Covid-19) outbreak.

The latest Budget also retains a focus on the future, from economic transformation to climate change.

The benchmark Straits Times Index opened 0.1 per cent or 3.17 points higher at 3,199.8. At 10:20am, the benchmark index was trading up 22.84 points to 0.7 per cent to 3,219.47. 

On Budget day on Tuesday, the STI slid for a fourth day, closing down 16.37 points or 0.5 per cent, as investors focused on Apple’s warning of a revenue hit from the virus outbreak and the continuing economic fallout. This included  an annoucement by Singapore Airlines that it was cancelling over 700 SIA and SilkAir flights between Singapore and countries like Japan, South Korea, Germany and the United States for the next three months due to weak demand amid the epidemic.

Among the most heavily traded by volume earlier at 9:06am on Wednesday were ESR-Reit which was flat $0.53 on 1.6 million units traded, and AEM Holdings which increased by $0.05 or 2.3 per cent to $2.22 after one million shares changed hands, as at 9.02am.

The trio of banks remained in the red. DBS fell $0.02 or 0.1 per cent to $25.25, OCBC Bank shed $0.04 or 0.4 per cent to $10.93, while UOB was down $0.07 or 0.3 per cent to $25.74, as at 9.02am on Wednesday. All three lenders had finished lower at Tuesday’s close.

Singtel was unchanged at $3.17 on Wednesday morning. Singapore’s largest telco had slipped 1.3 per cent to close at that level the day before. Its shares have lost 6 per cent since it reported Q3 earnings last Thursday.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 3,277.04.

The projected lower bound is: 3,152.01.

The projected closing price is: 3,214.53.

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 53.4810. This is not an overbought or oversold reading. The last signal was a sell 1 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 51.22. 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 11 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 56. 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 5 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed up 17.080 at 3,213.710. Volume was 16% below average (neutral) and Bollinger Bands were 11% wider than normal.

Open     High      Low     Close     Volume___
3,199.2203,222.6103,194.3503,213.710 204,087,792
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 3,203.86 3,219.20 3,209.64
Volatility: 16 12 12
Volume: 242,571,936 209,820,864 227,086,144

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 0.1% above its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. 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 16 periods.

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