Singapore Stock Market Updates for STI Analysis & Forecast

STI MARKET REVIEW :

SINGAPORE shares were up in the early minutes of trade on Tuesday, with the Straits Times Index up 0.04% or 1.05 points to 2,904.54 and ended 20 Points or 0.69% Higher to 2,923.49.

STI came off from its intra-day peak of 2939 and low of 2898. Singapore stocks gained at noon on Tuesday, with a mixed performance among large-caps and little in the way of a strong lead from the US or other Asian markets. Straits Times Index rose 0.69% to 2,923.50. Market breadth was however negative.

LOCAL BOURSE

Singapore stocks showed mixed sentiments as the large cap performance was at equilibrium and small cap doing good.The local data showed that singapore is facing a mild deflation at around 0.5% showing a sign of concern.

MARKET FORECAST

STI is expected to go up in next trading session if it breaks its resistance level of 2940. The market has positive sentiments as it has advancedin the current session.Investors are waiting for positive trend ,as they are eager to invest in the market

Midas Holdings won contracts for metro rail and airport rail train works in China and Malaysia.Overall it has secured four contracts of which three are for metro rail projects in China, and one for an airport train in Malaysia.

• Keppel Corp has priced the issue of its $200 million notes due 2023.The notes, issued under the US$3 billion ($4.2 billion) multi-currency medium-term note programme, will bear interest at a fixed rate of 3.725% a year. It will be payable semi-annually in arrears and will have a tenor of eight years.
• Noble Group Ltd,have its credit rating cut to junk by Standard & Poor's on concerns about the company's liquidity.The ratings company placed its BBB-rating on Noble, the lowest measure for investment-grade debt, on review with "negative implications.

GLOBAL FACTORS AND WORLD INDICES:

• The chances of Federal Reserve raising interest rates at its next meeting in December climbed to 74 per cent.The probability the central bank will act at its Dec 15-16 session increased from less than 30 per cent as recently as mid-October, futures contracts show.
• The US dollar rose at the start of week after a holiday-shortened week packed with economic reports expected to show improvements that could support a Federal Reserve interest rate hike next month.
• Japanese stocks posted a modest rise in choppy trade to mark a fifth consecutive day of gains as investors waited for fresh trading cues.The Nikkei share average ended 0.2 per cent higher at 19,924.89.
• Australian shares fell 0.95 per cent in broad-based selling as falling commodities prices weighed on the index and investors took profits.The S&P/ASX 200 index fell 50.02 points to 5,226.4 at the close of trade.
• Oil prices climbed in Asia ahead of a key meeting of the Opec and US commercial crude inventories are to gauge demand in the world's biggest oil consuming nation.
• Gold held a second day of declines as investors continue to expect an increase in U.S. borrowing costs by the end of the year, cutting the appeal of bullion which doesn't pay interest.
• Europe's main stock markets fell at the start of trading , extending the previous losses, as investors seek shelter from tumbling commodity prices and a strong dollar.
• China is on track to reach its economic growth target of about 7% this year, and the economy is going through adjustments to maintain reasonable medium- to long-term growth.
• China stocks recouped early losses to end marginally higher as a late-afternoon surge in small-caps offset weakness in resource companies.The CSI300 index of the largest listed companies in Shanghai and Shenzhen ended little changed at 3,753.89 points, while the Shanghai Composite Index gained 0.2 per cent to 3,616.11.
• Australia's Treasury lowered its estimate of the economy's potential growth rate, or speed limit, reflecting weaker population growth.The economy's potential rate will be about 2.75 per cent over the next few years, down from 3 per cent estimated at the time of the budget.