SGX Singapore : Weekly Technical Analysis 29 Sept- 03 Oct

Weekly wrap of STI:

The losing streak has stretched to four sessions now for the Singapore stock market, which has surrendered more than 60 points or 1.9 percent in that span. The Straits Times Index finished just below the 3,230-point plateau, although the market may see some traction on Friday. The global forecast for the Asian markets is mixed to lower, with negative sentiment offset by bargain hunting after major selling earlier this week. The STI finished sharply lower on Thursday with broadly based losses - particularly among the property stocks, financial shares and plantations.

STRAIT TIMES WEEKLY WRAP
Open	3290.82
High	3293.99
Low	3222.92
Close	3253.24
Change(Points)	-38.97
% Change	-1.19

 Market Forecast for week ahead:

At the last trading day the market seemed to take a correction and moved up .It is bearish if it breaks 3225-3220 on a sustained basis and bullish if it can go above 3270 on a sustained basis.

Weekly Technical view on STI
Support 1	Support 2	Support 3	Resistance 1	Resistance 2	Resistance 3
3220	3200	3180	3275	3285	3290

 Technical Indicators:

RSI is at 46.19 and CCI is at -130.82 .Both the indicators are supportive for the bullish trend .MACD is at 23.95.

Macroeconomic factors:

• Singapore’s Purchasing Managers' Index (PMI) reverted to expansion mode in September, rising 0.8 points to 50.5 after slumping unexpectedly to 49.7 in August.
• Investor appetite in Asia and North America fell in September this year amid a rise in investor confidence globally, State Street's Investor Confidence Index (ICI) said on Wednesday.
• Protests in China have caused a pullback in some Asian stock markets, but the executive chairman of Templeton Emerging Markets Group has identified the decline as a buying opportunity.
• Singapore’s home prices declined for a fourth consecutive quarter, the longest losing streak in five years, as tighter mortgage measures cooled demand in Asia’s second-most expensive housing market.
• Resale prices of public housing fell 1.6 per cent in the third quarter, compared to Q2, according to flash estimates released by the housing and development board.
• Singapore’s bond market is getting a boost from Chinese borrowers tapping the island’s millionaires for record amounts at rates almost 30% cheaper than home.
• Total bank lending in Singapore rose 1.2 per cent in August from July as lending for building and construction edged higher, central bank data showed on Tuesday.
• Asian markets mostly slipped Tuesday, with Hong Kong hit for a second successive day as a pro-democracy protest in the city showed no signs of letting up, while a measure of Chinese manufacturing came in below forecast.