Singapore: STI Index (.STI) posted monthly gain amid trade worries

Singapore: STI Index (.STI) posted monthly gain amid trade worries

Singapore: STI Index (.STI) posted monthly gain amid trade worries

Malaysia shares fell Friday capping quarterly earnings reporting seasons amid wild swings in commodity prices and heightened caution ahead of G-20 summit this weekend. Singapore stocks rose.

The FBM KLCI ended 1% lower at 1679.86, dragging the monthly loss at 1.7%. Most sectors in Malaysia were ended in the red with plantation and energy stocks suffering sharp losses. The Straits Times Index meanwhile closed 0.2% higher at 3115.46 and finished November with 3.3% gain.

“Singapore stocks have already corrected 20%-40% over the past quarter,” said KGI Securities Head of Singapore Equities Research Joel Ng, “and there are stocks that are offering attractive valuations at their current price.”

Investors await the outcome of a dinner meeting between Chinese President Xi Jinping and U.S. President Donald Trump on Saturday at the G-20 summit in Argentina for a clearer picture to emerge at the world top two economies potentially seek a deal to ease the simmering trade row of trade relations between the world’s top two economies.

The summit starts on Friday. Trade uncertainty over the tariff spat has continued to bedevil markets. For months now, fears of an all-out trade war between the world’s two largest economies have crippled risk appetite, spawning volatility across equities and more so in the emerging markets.

Another risk event to look out for this weekend is the diplomacy at work between the U.S., Saudi Arabia, and Russia, which is critical for the global oil price and, in turn, for Asian economies challenged by the steep prices, Prakash Sakpal, ING Economist for Asia.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 3,199.51.

The projected lower bound is: 3,033.20.

The projected closing price is: 3,116.35.

Candlesticks

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

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 80.1448. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 17 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 58.42. 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 21 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 140.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 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 buy 20 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed up 8.170 at 3,117.610. Volume was 68% above average (neutral) and Bollinger Bands were 45% narrower than normal.

Open High Low Close Volume___
3,117.9103,130.8103,110.3403,117.610 384,850,784

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

Moving Averages: 10-period 50-period 200-period
Close: 3,072.99 3,101.85 3,311.77
Volatility: 12 17 16
Volume: 203,954,624 234,328,592 242,367,552

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 5.9% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 6 periods.

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