Singapore Stock Market Technical Analysis Report 11 May

Market Review for STI: Singapore shares are likely to head higher on the back of Wall Street's rally last Friday fuelled by a positive April US payrolls report.

 The US unemployment rate fell to 5.4%, the lowest since May 2008.China's decision on Sunday to cut interest rates - the third reduction in six months - to support the world's second-largest economy is also expected to underpin investor sentiment. The Dow Jones Industrial Average rose 1.5% to 18,191.11, the S&P 500 climbed 1.4% to 2,116.10 and the Nasdaq Composite gained 1.2% to 5,003.55.

Market forecast for STI: STI has taken rebound we may expect bullish trend in STI.
Technical Indicators: RSI is at 49 and CCI is at -74.
ECONOMIC FACTORS:

• Asian stocks rise after China rate cut, US payrolls.
• Vallianz's Q1 profit rises 5% to US$4.97m.
• Crude-oil bulls threatened as shale patch revives drilling plans.
• Dollar suffers as reflation trade transforms losers into winners.
• Asian bankers face US$43b dead deals after oil plunge.
• Nuclear power generation in Japan will cost 10.3 yen per kilowatt hour or more by 2030, the cheapest among various power sources.
• Asia-Pacific Strategic Investments has offered to acquire Century 21 Hong Kong in a deal worth $1 million.
• The US$5.3-trillion-a-day foreign-exchange market has a new buzzword: reflation. "This could bode for a weaker US dollar across the board."
• Saudi Arabia opening its US$568 billion stock exchange to foreigners.
• Nuclear power generation in Japan will cost 10.3 yen per kilowatt hour or more by 2030, the cheapest among various power sources.
• Asia-Pacific Strategic Investments has offered to acquire Century 21 Hong Kong in a deal worth $1 million.

SGX Singapore : STI Trading Analysis and Signals

Market Review for STI: Shares edged down and the Straits Times Index (STI) was 5.9 points or 0.17 per cent lower at 3,476.80 despite Wall Street's climb overnight. Shares were still mostly lower as investors cashed out on stocks that went ex-dividend and digested various earnings reports before planning their next move.
Market forecast for STI:We may expect STI will touch 3440 after that it will take rebound.
Technical Indicators: RSI is at 47 and CCI is at -87.
ECONOMIC FACTORS:

• Oil prices edged lower in thin Asian trade as concerns over a global supply glut persisted, with few fresh leads for dealers to track.
• SINGAPORE'S manufacturing sector contracted for a fifth consecutive month in April, according to the latest purchasing managers' index (PMI).
• Indonesia's economic growth in the first quarter slumped to its weakest annual pace since 2009, hurt by slowing demand from major export partners and a drop in global oil prices, the statistics bureau said on Tuesday. 
• Gold retained overnight gains on Tuesday but was stuck below US$1,200 an ounce as investors waited on US nonfarm payrolls later in the week for clues on when the Federal Reserve will hike interest rates.
• KENCANA Agri will report a net loss for the three months ended March 31, the palm oil producer announced late on Monday.
• Noble Group has brought forward its first-quarter results announcement by two days, but the Asian commodity trading giant under attack from a research firm over alleged improper accounting did not give a reason for the move.