STI set for firmer open

Analyst says the index looks over-due for a rebound.

OCBC Investment Research said:

The recovery on Wall Street Friday and the Nikkei’s strong start (now up 2.2%) are likely to give the local bourse a much-needed lift.

Technically, the index also looks over-due for a rebound, as the market has been quite heavily oversold recently.

However, we note that the STI has fallen below the key 2953 support (38.2% Fibonacci retracement of the rally from 2601-3110). The daily MACD has also fallen below the centre-line and is currently still looking quite negative.

As such, the index’s failure to clear the key 3000 hurdle could see it easing back towards the next key support around 2904.

IG Markets Singapore meanwhile noted:

In Singapore, the Fraser & Neave drama will enjoy another twist this week when a largely defunct 22 November deadline kicks in for the conglomerate to consider the $8.88 a share offer from the Thais.

After OUE’s $9.08 a share offer was launched last week it threw the ball back in Thai tycoon Charoen’s court to come up with an improved offer. The clock is now ticking as shareholders wait to see what he’ll come up as he looks reluctant to give up the fight for F&N.

But shareholders will definitely have to wait for any bumper payday. F&N has said it won’t distribute the $54 billion proceeds from its sale of Asia Pacific Breweries back to shareholders until the takeover tussle is over.

If Charoen has his way, there will be no such capital reduction.

The futures market is pointing to a firmer open for the STI this morning as it looks to start it push back to the promised land of 3000, after slipping back to 2945 last week.

Returns for the STI this year have dropped to 11% and are less than spectacular as the second half of the year fails to live up to a strong first six months.

Reaching the people who run Asia's businesses is harder than it used to be.

Inboxes are crowded. Attention is short. The executives you most want to reach — the founders, CFOs, and operators who actually move budgets — are the hardest to find through the usual channels. If you're building a company, a category, or a reputation, you already know this.

We've spent twenty years building the room they read. Singapore Business Review is where senior decision makers in Singapore and across Southeast Asia come for business coverage they can't get elsewhere — in print, online, and in person at the summits and roundtables we host across seven markets.

If you have something these readers should know about — a point of view worth publishing, a product worth their attention, an event worth their time — we'd like to hear what you're trying to do.

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