STI to initiate technical rebound

Sharp corrections were seen in the STI as it moved into bear-market territory.

OCBC Investment Research said:

The generally less muted reactions on Wall Street overnight, coupled with the mildly positive Nikkei start (+0.2% now) are likely to offer some relief to the local bourse this morning.

Following a bearish break of its key 3-year uptrend support last Friday, the STI plunged another 1.7% yesterday to close at its intraday low. As a result, the medium-term outlook has turned significantly negative.

But with today's tone likely to turn a tad more upside biased, we could see the index initiating a technical rebound in an attempt to narrow the 2716-2740 gap resistance formed yesterday.

Beyond that, the next resistance is pegged at the 2760 support-turned-resistance. On the downside, 2690 (minor trough) is the immediate support, as the subsequent base lies at the 2650 support (next minor trough).

IG Markets Singapore said:

In Asia, China seems to be ramping up its infrastructure spending. But rather than announcing a massive spending spree officials seem to be quietly fast-tracking approvals for infrastructure projects around the country.

This will still have the effect of stimulating its flagging economy while hopefully avoiding the creation of asset bubbles through economic exuberance.

After yesterday’s savage sell-off, many markets are in for a dead-cat bounce of a rebound today. Japanese stocks have opened higher this morning while the futures market points to a firmer open for the STI.

The sharp corrections we have seen in the STI leave it sitting just below the 2,700 floor this morning having moved into bear-market territory.

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia