Singapore: STI Index (.STI) stocks in the city-state remain attractive compared to the rest of Asia

Singapore: STI Index (.STI) stocks in the city-state remain attractive compared to the rest of Asia

Singapore: STI Index (.STI) stocks in the city-state remain attractive compared to the rest of Asia

Even though Singapore’s economy is taking a big hit from the U.S.-China trade war, stocks in the city-state remain attractive compared to the rest of Asia, analysts told CNBC.

“The trade war impacts (Singapore) quite a bit, but at the same time, I think Singapore has an advantage relative to other Asian markets,” said Vasu Menon, executive director of investment strategy at Singapore’s OCBC Bank.

“Singapore companies offer you pretty good yield. The dividend yields in Singapore are one of the highest you have in Asia,” Menon told CNBC in late August.

The real estate investment trust (REIT) sector in Singapore is “huge,” he added.

Menon’s views were echoed by REYL Singapore’s Head of Portfolio Management Daryl Liew.

“Singapore equities (have) got a reputation for being a safe-haven, dividend play, simply because of the REIT market,” Liew said. “Singapore was … one of the first few Asian markets to start to roll out the REITs. That’s why it’s attracted a lot of listings, not just Singapore players but also offshore.”

Technical Indicators

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 3,184.00.

The projected upper bound is: 3,205.76.

The projected lower bound is: 3,079.61.

The projected closing price is: 3,142.68.

Candlesticks

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 27 white candles and 23 black candles for a net of 4 white candles.

A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.

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 81.0421. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 7 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 48.19. 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 6 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 103.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 6 period(s) ago.

Rex Takasugi – TD Profile

STRAITS TIMES closed up 1.850 at 3,146.330. Volume was 30% below average (neutral) and Bollinger Bands were 44% narrower than normal.

Open     High      Low     Close     Volume___
3,147.6803,157.3503,141.7203,146.330 152,659,808
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 3,105.44 3,241.77 3,215.07
Volatility: 11 12 13
Volume: 218,610,992 225,359,312 211,381,552

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 2.1% 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 27 periods.

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