Business confidence among Singapore: STI Index (.STI) companies remained downbeat for the second quarter of 2019

Business confidence among Singapore: STI Index (.STI)  companies remained downbeat for the second quarter of 2019

Business confidence among Singapore: STI Index (.STI) companies remained downbeat for the second quarter of 2019

Singapore businesses are less confident about prospects for the second quarter of 2019, the third straight quarter of waning sentiment, according to the latest quarterly Singapore Commercial Credit Bureau’s (SCCB) Business Optimism Index released on Tuesday.

The overall index eased from +7.19 percentage points in Q1 2019, to +5.08 percentage points in Q2 2019. On a year-on-year basis, the index moderated further from +8.50 percentage points in Q2 2018.

The figures, derived from a survey of 200 business owners and senior executives, represent the net percentage of respondents expecting improvements in the coming quarter compared to the same period last year.

Financial and services sectors have emerged as the most optimistic sectors with all six indicators – volume of sales, net profits, new orders, employment levels, selling price and inventory levels – in the positive region for Q2 2019. The upbeat outlook for financial services was largely driven by robust demand within the insurance services sub-segment, SCCB said.

Services and financial sectors will remain key drivers of growth for H1 2019. On the overall, we expect the outlook to remain relatively positive given the recent Budget 2019 initiatives which were announced to provide support for firms to innovate and remain adaptable.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 3,300.92.

The projected lower bound is: 3,174.56.

The projected closing price is: 3,237.74.


A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 26 white candles and 23 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 40.0959. This is not an overbought or oversold reading. The last signal was a buy 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 52.28. 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 85 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 -71. This is not a topping or bottoming area. The last signal was a buy 1 period(s) ago.


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

Rex Takasugi – TD Profile

STRAITS TIMES closed down -17.010 at 3,234.070. Volume was 3% below average (neutral) and Bollinger Bands were 33% narrower than normal.

Open High Low Close Volume___
3,241.0103,247.6003,228.2503,234.070 202,475,504

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

Moving Averages: 10-period 50-period 200-period
Close: 3,252.85 3,179.22 3,200.94
Volatility: 11 13 16
Volume: 233,737,888 199,430,128 230,650,400

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.


STRAITS TIMES is currently 1.0% above 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 2 periods.

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