Singapore Exchange - STI Technical Analysis & Forecast 5-Nov

STI MARKET REVIEW :

Singapore’s benchmark Straits Times Index shares traded lower on Thursday, as US Federal Reserve chair Janet Yellen's comment that a December interest-rate hike remains a "live possibility" continued to sap trading. and ended 16.83 points or 0.55% lower to 3023.65. STI came off from its intra-day peak of 3043.85 and low of 3029.44.
Singapore equities inched lower at noon on Thursday, amid mixed trading in other Asian bourses ahead of pertinent US nonfarm payroll figures on Friday.
LOCAL BOURSE

Singapore’s moneylenders' credit bureau will begin operations next year. The Ministry of Law (MinLaw) will require all licensed moneylenders to provide information of their loans and the payment behaviour of their customers to the bureau.

Life insurance business in Singapore climbed 15 per cent to S$813 million in total weighted new business premiums in the third quarter of 2015.
MARKET FORECAST

STI is expected to consolidate within the range of 3045 - 3010. It has its support at 3000 and resistance at 3045. If it breaks thhis resistance it might go up to 3075. Investor’s sentiment are cautious over the statement made by Jennet Yellen increasing expectation to raise US interest rate in December and over US nonfarm payroll figures to be released on Friday.

STI COUNTER SPECIFIC NEWS

• Oil and gas infrastructure services firm Rotary Engineering reported net profit of S$6.3 million for the three months ended Sep 30, 2015, down 42 per cent from S$10.9 million the same quarter a year ago. Revenue fell to S$60.3 million from S$172 million a year ago, a decrease of 65 per cent.
• Halcyon Agri turned around a year-ago loss to post a US$47,000 net profit in the third quarter on the back of its newly acquired trading business, the rubber producer announced on Wednesday after the market closed.
• Parkway Life Real Estate Investment Trust (PLife Reit) on Thursday posted a 15.6 per cent year-on-year rise in third-quarter distributable income to S$20.3 million, or a distribution per unit (DPU) of 3.36 Singapore cents.

GLOBAL FACTORS AND WORLD INDICES:

• Hong Kong shares finished flat on Thursday, after a rally in China's stock market offset losses on the Federal Reserve's message of a possible "liftoff" in US interest rates in December. Hang Seng index was unchanged at 23,051.04.
• London's stock market fell at the start of trading Thursday as investors looked ahead to the Bank of England's latest interest rate decision and inflation forecasts. In the eurozone, the Frankfurt and Paris indices rose slightly.
• China's stocks extended the gains on Thursday as investors jumped into blue-chip shares, driving trading volume to its highest in two-and-a-half months. CSI300 index of the largest listed companies in Shanghai and Shenzhen rose 2.1 per cent, to 3,705.97, while the Shanghai Composite Index gained 1.9 per cent, to 3,522.82 points.
• Japanese stocks closed near a 10 week high on Thursday as a weaker yen boosted prospects for exporters, and corporate-earnings and dividend related announcements stoked share buying. Nikkei share average gained 1 per cent to end the day at 19,116.41, its highest close since August 28.
• South Korean shares and won lost ground on Thursday after comments from Federal Reserve Chair Yellen bolstered expectations that US interest rates could be raised as early as December. Korea Composite Stock Price Index (KOSPI) trimmed early losses and closed down 0.2 per cent at 2,049.42 points.
• Australian shares closed lower on Thursday with bank stocks providing the biggest drag. National Australia Bank, which traded ex-dividend, ended 4.5 per cent lower, while the other major banks were down between 0.5 per cent and 1.0 per cent. S&P/ASX 200 index fell 0.9 per cent, or 49.29 points, to 5,193.00.
• Major Asian markets defied a negative lead from Wall Street on Thursday, with Shanghai performing especially strongly and Japan Post shares soaring again in Tokyo.
• Gold held near a one-month low on Thursday and looked likely to drop below the US$1,100-an-ounce level after Federal Reserve Chair Janet Yellen bolstered market expectations for a US interest rate hike in December.
• Dollar held steady in Asia on Thursday after US central bank chief Janet Yellen suggested that a December US interest rate lift-off was still on the table.