Singapore: STI Index (.STI) local investors managed to push shares up

Singapore: STI Index (.STI) local investors managed to push shares up

Singapore: STI Index (.STI) local investors managed to push shares up

Local investors managed to push shares up a notch yesterday despite disappointing factory data from China and warning signals from the United States bond market.

The Straits Times Index (STI) added 9.38 points, or 0.3 per cent, to finish at 3,155.71 after Monday’s flat result.

Elsewhere, bourses in Australia, China and Malaysia ended lower, Japan and South Korea rose, while Hong Kong closed unchanged.

CMC Markets analyst Margaret Yang said investors seemed to be “buying banks and dumping Reits, as bond yields are surging globally and (with) the US Treasury yield curve less inverted than a week ago”. “With similar dividend yield, banks seem to offer better growth prospect than Reits at the moment.”

Among secondary stocks, Isetan Singapore surged 9.6 per cent to $5.24 in little more than half a session on news that YTL Starhill Global Reit Management had made an offer to acquire the Japanese department store operator’s Wisma Atria stake. Trading was halted in the afternoon, before both parties noted that no deal had been inked yet.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 3,215.68.

The projected lower bound is: 3,089.10.

The projected closing price is: 3,152.39.

Candlesticks

A white body occurred (because prices closed higher 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 28 white candles and 22 black candles for a net of 6 white candles.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

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 79.4729. 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 50.37. 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 7 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 110.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 7 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 7 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed up 9.380 at 3,155.710. Volume was 0% above average (neutral) and Bollinger Bands were 43% narrower than normal.

Open     High      Low     Close     Volume___
3,155.6803,168.0703,151.2703,155.710 219,084,992
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 3,114.26 3,238.45 3,215.65
Volatility: 11 12 13
Volume: 210,311,648 223,110,352 211,775,808

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 1.9% below its 200-period moving average and is in an downward trend. Volatility is low 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 28 periods.

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