Singapore: STI Index (.STI) share benchmarks across most countries bucked the “October effect”

Singapore: STI Index (.STI) share benchmarks across most countries bucked the “October effect”

Singapore: STI Index (.STI) share benchmarks across most countries bucked the “October effect”

Share benchmarks across most countries bucked the “October effect”, with the Straits Times Index (STI) posting a 4 per cent monthly gain, the Singapore Exchange (SGX) noted yesterday.

Trading was affected by a week-long national holiday in China and the announcement of a tentative agreement for the “first phase” of a trade deal between the United States and China.

Emerging markets also benefited from a decline in the US dollar.

“Once the China stock market reopened, its local markets had time to digest its positive manufacturing gauges for the month of September,” the SGX added.

Another bright spot for markets was US President Donald Trump’s announcement of a possible trade deal with China. This led 10-year US Treasury yields to bounce from 1.5 per cent lows in the first week of October to end the month at 1.69 per cent.

The trade-weighted US dollar index also declined 2 per cent while the FTSE All World Index gained 5 per cent over the same three weeks.

Closer to home, the STI recorded a 5 per cent rebound from its October intra-month low of 3,071.54 points to close the month at 3,229.8.

Overall, the STI gained 4 per cent in October, taking its 10-month total return to 9 per cent, in line with its 10-year average annualised total return. This was on a par with the 4 per cent return by Japan’s Nikkei 225, while Taiwan’s technology-laden Taiex led the region with a 5 per cent gain for the month.

Banks were among Singapore’s 50 most traded stocks last month ranked by turnover. DBS gained 4 per cent over the month, United Overseas Bank rose 4.6 per cent and OCBC Bank rose 1.5 per cent.

Singtel added 6.5 per cent, while Keppel Corp jumped 15.7 per cent, after Singapore investment firm Te-masek last month announced a surprise $4 billion partial offer to raise its stake in the group to 51 per cent.

The top performer of the 50 most traded stocks was Rex International with a 37 per cent gain, taking its 10-month return to 95 per cent.

Technical Indicators

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 3,178.80.

The projected upper bound is: 3,306.82.

The projected lower bound is: 3,197.68.

The projected closing price is: 3,252.25.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 3 black candles for a net of 3 white candles. During the past 50 bars, there have been 23 white candles and 26 black candles for a net of 3 black 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 82.9489. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 4 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 71.89. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 47 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 120.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 13 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 16 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed up 12.230 at 3,248.630. Volume was 43% above average (neutral) and Bollinger Bands were 9% wider than normal.

Open     High      Low     Close     Volume___
3,242.9103,256.5403,237.4603,248.630 305,054,592
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 3,203.35 3,145.80 3,225.16
Volatility: 7 11 12
Volume: 205,733,600 203,316,256 212,814,544

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 0.7% above 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. Our momentum oscillator is currently indicating that .STI is currently in an overbought condition.

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