Straits Times Index - Weekly Overview (19-23 Nov)

Weekly Technical view on STI

Weekly wrap of STI:

After 3 weeks straight fall, STI traded above its 50 week MA level this week and recovers some losses.

STI opens its 50 week MA level @ 2967.08, and then it turns back to lower level and made a low @ 2953.43 and took support @ this level. After taking support its 50 week MA level STI recovery sharply and made a week high @ 2993.37, finally closed @ 2989.28 with gain of 43.65 points up by 1.48% wow basis.

Macro economic factors:

• Singapore's inflation rate eased to 4.0% in October from 4.7% the previous month.
  This slower-than-expected increase in the consumer price index was mainly due to smaller gains in transportation and housing costs.
• The core inflation rate, which excludes transport and accommodation costs, fell to 2.2 % in October from 2.4 % in September. 
• The preliminary HSBC China Manufacturing Purchasing Managers Index, a measure of nationwide manufacturing activity, rose to 50.4 in November compared with a final reading of 49.5 in October, HSBC Holdings said on Thursday. A reading above 50 indicates growth