Singapore: STI Index (.STI) stocks in relief rebound, most of Asia still shaky day after coronavirus-fuelled global rout

Singapore: STI Index (.STI) stocks in relief rebound, most of Asia still shaky day after coronavirus-fuelled global rout

Singapore stocks enjoyed a relief rebound on Tuesday morning (Feb 25) even as most of Asia continued their slide as signs that the coronavirus outbreak here seems to be largely contained overcame bearish sentiment after a 1,000-point plunge in the Dow Jones Industrial Average overnight.

The Straits Times Index went into the midday trading break 25.40 points or 0.8 per cent higher at 3,167.60.

Tokyo led losses as its markets reopened to play catch-up with Monday’s global selloff.

The Nikkei ended the morning 3 per cent lower, while Sydney shed 1.3 per cent and the Shanghai lost 0.9 per cent.

South Korea ‘s hard-hit Kospi index rose 0.7 per cent after a 4 per cent plunge in the previous session as new cases of coronavirus infections slowed and the government promised to support the economy.

The outbreak outside China is generally worsening, but it’s a different picture for Singapore.

Wilmar International notched a 3.7 per cent  or 15 cents advance to $4.20, while Venture Capital rose 2.24 per cent or 36 cents to $16.44. Property developers also chalked up good gains, with CapitaLand up 1.91 per cent or 7 cents to $3.74, while UOL Group was up 1.65 per cent or 13 cents to $8.03.

But the rebound did not extend to all quarters. Far East Orchard lost 1.71 per cent or 2 cents to $1.15, while Yanlord Land shed 1.72 per cent or 2 cents to $1.14.

Parkway Life Reit, which hit a new record high of $3.74 last week as investors piled into the healthcare sector when the virus outbreak worsened, underperformed with a 1.09 per cent drop to $3.62.

Citi Research analysts said that the slower rate of new Covid-19 infections reported by South Korea and the declining rate of infection from China were the likely drivers for the relief rebound in Singapore and South Korea.

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 3,221.83.

The projected lower bound is: 3,092.95.

The projected closing price is: 3,157.39.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 24 white candles and 23 black candles for a net of 1 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 10.2254. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 5 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 42.25. 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 15 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 -119.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 6 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 1 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed up 16.040 at 3,158.240. Volume was 4% above average (neutral) and Bollinger Bands were 0% wider than normal.

Open     High      Low     Close     Volume___
3,145.0103,171.7403,142.2003,158.240 255,301,536
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 3,196.70 3,216.49 3,208.50
Volatility: 14 13 12
Volume: 235,860,896 209,185,728 227,689,008

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 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 20 periods.

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