STI Review 18 March 2016

STI been trending up thinly it seems. By inferring from the candlestick body length, it’s been trading in a tight daily range. The volume also been decreasing. Usually, we should be seeing increasing volume along with the formation of higher candlestick. This will signal a good uptrend.

Looking at the stochastic signals, we can see that it is also in the overbought region. This can increase the possibility of a pull-back soon. Trending upwards, it will coincide with the 200 days moving average, which is also around 50% fibo level, which might pose as a resistance. Therefore, this 3000 zone is a area we can keep a close watch, to see if STI is able to retest this zone or not.

European Central Bank to Expand QE, Cuts Interest Rates Further

The European Central Bank cut all its interest rates and expanded its monthly bond purchases by a third as President Mario Draghi strives to fend off the threat of euro-area deflation. The euro sank and stocks rose.

Original Article:
http://www.bloomberg.com/news/articles/2016-03-10/ecb-cuts-all-rates-as-qe-boosted-to-80-billion-euros-a-month

Comments: We should see stocks rally for short term.

Osim buyout at $1.32

MAR 7, 20168:04 AM
THE chairman and chief executive officer of healthy lifestyle products provider Osim International has made a voluntary unconditional cash offer of S$1.32 per share to take the company private.

Original article:
http://www.businesstimes.com.sg/companies-markets/osim-chief-offers-to-buy-out-the-company-at-s132-per-share

Comment: Currently, the stock is still being halted

STI index review, Noble replaced by CapitaLand Commercial Trust

Noble will be removed and replaced by CapitaLand Commercial Trust. Do expect the market to price in tomorrow even though it will only take effect on 21 March 2016. Noble (Down), CapitaLand Comercial Trust (Up).

next review 2 June 2016.

STI quarterly review.GIF

From SGX website:
http://sgx.com/wps/wcm/connect/sgx_en/home/higlights/news_releases/Straits-Times-Index-%28STI%29-quarterly-review