SGX's STI & KLSE's KLCI Technical Analysis 9-March

Market Review for STI: Singapore shares opened lower on Monday, with the benchmark Straits Times Index at 3,389.6 in early trade, down 0.82 per cent, or 27.91 points.

Risk appetite remained low as investors reacted to a better-than-expected US jobs report by selling stocks, mindful that the data could prompt the Federal Reserve to raise interest rates sooner rather than later.   
Market forecast for STI: If STI is follow technical then we may expect bearish rally in next trading session. 
Technical Indicators: RSI is at 49 and CCI is at -170.  
Important Factor for today:-

• SINGAPORE'S labour market will tighten further and the local workforce growth will slow significantly in the second half of this decade.
• Singapore Post has formed a joint venture with PT Trikomsel Oke Tbk, which sells mobile phones in Indonesia, to tap the e-commerce market in Southeast Asia's biggest economy.
• Jurong Aromatics Corporation (JAC) has completed maintenance at its petrochemical complex in Singapore that had started around the middle of December.
• SMRT Corp's growth drivers are still intact despite a series of rail service disruptions in the last two weeks that the public transport regulator deemed unacceptable,
• Asian stocks buckled while the US dollar held firm in early Monday trade after strong US jobs data fanned expectations that the US Federal Reserve may raise interest rates sooner than previously thought.
• Huang Yupeng, chairman and CEO of Sino Grandness Food Industry Group, has raised his stake to 35.34% from 35.26% in Shenhen headquartered company.

Market Review for KLCI: The FBM KLCI index lost 15.22 points or 0.84% on Monday. Finance Index fell 0.54% to 15903.41 points, Properties Index dropped 0.85% to 1306.45 points and Plantation Index down 0.50% to 7884.27 points. Market traded within a range of 19.00 points between an intra-day high of 1797.99 and a low of 1778.99 during the session.The KLCI dropped 15.22 points to 1791.74, amid losses at Wall Street last Friday as better-than-forecast jobs data fueled speculation that the US Federal Reserve is moving closer to raising interest rates. The performance of our benchmark index was bogged down by selling pressure in heavyweight counters such as Sapurakencana and Genting.
Market forecast for KLCI: Market was bearish due to US data, formed a falling window which is showing further bearish signal.
Technical indicators: RSI stood below the center line at 44.711 with its CCI at -187.959. Difference line of MACD performed at 6.999 below its signal line which performed at 10.636.
ECONOMIC FACTORS:

• Malaysia's ringgit slid to a six-year low versus the dollar after US jobs data hardened speculation the Federal Reserve will increase interest rates by the end of June.
• IOI Properties Group Bhd has aborted its NT$25.14 billion (RM2.74 billion) proposed acquisition of a stake in the iconic skyscraper, Taipei 101.
• The international reserves of Bank Negara Malaysia amounted to RM386 billion. The reserves position is sufficient to finance 7.9 months of retained imports and is 1.1 times the short-term external debt.
• Short-term interbank rates are expected to remain stable today on Bank Negara Malaysia (BNM)’s intervention to absorb excess liquidity from the financial system.
• There are positive outlook on the construction sector due to better earnings outlook, robust contracts award and limited valuation downside on construction stocks. The robustness of the sector may propel construction companies' earnings growth prospect further and which in turn shall translate into higher market valuation.
• Tenaga Nasional Bhd (TNB) is optimistic that its revised offer for a controlling stake in Integrax Bhd will be well-received by the port operators shareholders.
• Boustead Holdings Bhd is buying a 50% stake in Irat Properties Sdn Bhd, which recently signed a deal to buy the entire stakes in ATES Sdn Bhd and Beta Tegap Sdn Bhd, the joint operators of the automated traffic enforcement system (AES) in the country.
• Mulpha Land Bhd has received a mandatory takeover offer from entrepreneur Datuk Fakhri Yassin Mahiaddin, via his private investment vehicle Teladan Kuasa Sdn Bhd, to acquire the rest of Mulpha Land for 49.7 sen a share.
• EITA Resources Bhd’s unit, EITA-Schneider (Mfg) Sdn Bhd, has formed a JV with Shanghai STEP Electric Corp to provide elevator control systems for the Association and South-East Asian Nations and Middle East markets.
• Investment holding company, LPI Capital Bhd, is confident of sailing through the challenging FY15 and post another satisfactory performance.
• WCT Holdings Bhd has been awarded a RM1.2 billion contract in Doha, Qatar, through its wholly-owned subsidiary WCT Berhad’s joint venture with Al-Ali Projects Co. there.