Wednesday, January 16, 2013

SG Market (16 Jan 13)

SG Market: S’pore shares appear to be in correction mode with no directional cue from Wall Street and key technical indicators Stochastics, RSI, MACD, ADX all turning down from grossly overbought levels. Traders may get cautious entering into the earnings reporting season. After breaking below the psychological 3200 level, we see the STI drifting towards the next support at 3180 with further downside risk at 3150. Overhead resistance will remain at recent high of 3235. F&N is likely to be in focus after the the Securities Industry Council stepped in to end the months-long takeover stalemate by asking two bidders to make their revised offers by 21 Jan. Property stocks such as CapitaLand and City Dev will continue to face pressure following the drastic property curbs introduced by the govt. In other corporate news, both Ezion and Swiber announced new contracts, while Yangzijiang is proposing to issue warrants.

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