April 2019 Wrap-Up - CGS-CIMB Research 2019-05-02: Singapore In 5 Minutes

Singapore Strategy - CGS-CIMB Research | SGinvestors.io DBS GROUP HOLDINGS LTD (SGX:D05) KEPPEL CORPORATION LIMITED (SGX:BN4)

April 2019 Wrap-Up - Singapore In 5 Minutes




FSSTI up despite underwhelming local data

  • The FSSTI closed at 3,400.2 pts, up 5.8% in April 2019, as China’s 1Q19 GDP stabilised, and as surprisingly strong US 1Q19 GDP figures gave a late-month boost.
  • Flash 1Q19 GDP data came in slightly below consensus (1.4%), at 1.3% y-o-y. NODX sank 11.7% y-o-y, in part due to a high base year; however, the decline was broad-based, with Electronics down 26.7% y-o-y and Non-Electronics down 7% y-o-y.
  • Both institutional and retail investors were net sellers for the month, selling Telcos and Financials. Institutions also sold REITs and Consumer Discretionary, while retail sold Industrials and Consumer Staples. (see: SGX Market Fund Flow overview and SGX Weekly Market Fund Flow by Sector)


DBS, Keppel Corp and UOB top performers in Apr 2019



Boost from Draft Master Plan 2019 and IR2 plans

  • We expect the CBD Incentive Scheme and the committed investment of S$9bn to expand and refresh the two integrated resorts, to give the economy an initial boost through the construction and banking industries, and eventually spill over to tourism, hospitality and services. See our full report: Singapore Strategy - Age-defying boost published on 5 April).


Key news – mega deals in property sector and STE



Technical perspective: expect near-term correction

  • STI breached above the 3,350 key resistance in mid-April and hit above the 3,400 psychological level. However, with the rising bullish momentum, the Daily Relative Strength Index (RSI) has also entered into an extreme overbought condition.
  • The RSI hit a high of 78 on 29 April as the STI formed an intraday high of 3,415 points. The last extreme overbought condition occurred in April 2015 followed by a period of correction in the next month with STI falling by c.6%. Hence, we expect a near-term correction to 3,200-3,270 with 3,400 as a psychological round number capping the immediate upside.
  • A bearish close back below the 3,350 pivot point could turn the sentiment negative.





LIM Siew Khee CGS-CIMB Research | https://research.itradecimb.com/ 2019-05-02
SGX Stock Analyst Report ADD MAINTAIN ADD 30.00 SAME 30.00
ADD MAINTAIN ADD 8.410 SAME 8.410



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