Singapore Stock Market: STI Technical Analysis Outlook with Forecast

STI MARKET REVIEW :

SINGAPORE shares opened higher on Thursday.The benchmark Straits Times Index rose 26.91 points or 0.93 per cent to 2,912.99.

 following Wall Street's gain on expectations the Federal Reserve would be confident enough about the US economy to raise rates in December. STI closed33.8 points or 1.17% higher and came off from its intra-day peak of 2932.78 and low of 2906.86.

LOCAL BOURSE

Singapore equities climbed in line with gains seen in most other Asian bourses.The US Federal Reserve has also signalled a potential interest rate hike in December following which the market had mixed sentiments towards gaining.
MARKET FORECAST

STI is expected to consolidate in next trading session. Investors are still waiting for positive trend , but market is not showing positive trend. If STI break 2940 then it may take positive side.

NEWS

• Sembcorp Marine announced last evening that it has won a contract from a unit of Modec Inc. to build a floating storage and offloading vessel.It reported earlier that one of its customers has announced the cancellation of a US$214 million ($304 million) contract for a drilling rig.
• Linc Energy revealed that it has entered into a confidentiality, due diligence and exclusivity agreement with an Australian company in relation to its shale oil assets.The counter party has commenced due diligence in accordance with the agreement but no formal negotiations regarding the sale of the SAPEX assets have been held at this time.
• Viva Industrial Trust announced plans to raise a total of $110 million through a private placement and preferential offering of its units.It will sell 101.1 million new stapled securities to its existing holders at $0.715 each in a ratio of one new unit for every seven held. The preferential offer is expected to raise $72.3 million.
• First Reit is about to acquire stake in Indonesian hospital and mall for S$70m.

GLOBAL FACTORS AND WORLD INDICES:

• Federal Reserve officials continued to flag December as a likely time for interest rates to rise after seven years near zero, with two expressing confidence they will be able to pull off a rate hike smoothly despite fears of an abrupt market reaction
• Wall Street stocks marched higher, greeting US Federal Reserve meeting on minutes that suggested a likely interest rate increase in December.
• US dollar dipped against the euro after the minutes of the Federal Reserve's October policy meeting reinforced expectations of an interest rate hike next month.Most participants of the Federal Open Market Committee anticipated the US economy would be strong enough in December to weather the first rate hike in over nine years.
• Asian stocks and emerging market currencies rallied after minutes from the Federal Reserve showed growing confidence in the US economy, ramping up the chances of a December interest rate hike.
• Commodity markets are in worse shape than in 2009, and is trading with more risks.Oil, copper and coal are trading around their lowest levels since the global financial crisis.
• Oil prices rose in Asian trade on Thursday as Europe struck back against the Islamic State (IS) group after the Paris attacks and after a mild rise in US stockpiles.US economy also lifted confidence, with most markets in Asia advancing following a rally on Wall Street.
• Gold may become a three-figure commodity once again after holding above US$1,000 an ounce ($1,420 an ounce) for the past six years.Bullion may slide below the level in the first half of 2016 after the Federal Reserve raises rate and the dollar gains.
• China stocks ended higher with a sharp rebound in small-caps offsetting the drag from property shares and investor caution ahead of a flurry of new listings.The blue-chip CSI300 index rose 1.6 per cent, to 3,774.97, while the Shanghai Composite Index gained 1.4 per cent, to 3,617.06 points.
• Tokyo stocks rose 1.07 per cent as investors weighed the Bank of Japan's decision to keep its monetary easing programme unchanged, pushing up the yen against the dollar.The Nikkei 225 at the Tokyo Stock Exchange rose 210.63 points to 19,859.81.
• Shares in Hong Kong climbed more than one per cent in opening trade after minutes from the Federal Reserve's October policy meeting showed board members had greater confidence in the US economy.The benchmark Hang Seng Index rose 1.06 per cent, or 234.31 points, to 22,422.57.