Singapore Market Jan 2020 Wrap Up - CGS-CIMB Research 2020-01-31: Singapore In 5

Singapore Market - CGS-CIMB Research | SGinvestors.io RIVERSTONE HOLDINGS LIMITED (SGX:AP4)

Singapore Market Jan 2020 Wrap Up - Singapore In 5




Briefer respite than expected: new storm clouds gather

  • The FSSTI had initially picked up following the conclusion of the Phase 1 deal between the US and China, culminating in its signing on 15 Jan. But the improved sentiment did not last, with negative newsflow on the severity of the novel coronavirus (2019-nCoV) causing global stocks to plummet again. The FSSTI subsequently closed Jan down 70.8 pts, at 3,152.07 pts.
  • NODX rebounded to 2.4% y-o-y in Dec 19 (-5.9% y-o-y Nov), while the decline in industrial production index (IPI) moderated to -0.7% y-o-y in Dec 19 (-8.9% y-o-y in Nov).
  • Full-year property data has been released for private homes, +2.7% y-o-y, but below 2018’s figure of +7.9% y-o-y, as the impact of 2018’s property cooling measures took effect.
  • Prices of landed homes +5.7% y-o-y while non-landed properties +1.9% y-o-y. Rentals of private homes +1.4% y-o-y, compared to a +0.6% y-o-y in non-landed properties.


Market: stocks with large China exposure fall; healthcare plays rise



Key corporate news



Technical perspective

  • As the FSSTI rallied to the 3,285 resistance area in the first half of Jan, the failure to break above the ceiling revealed some early signs of weakness. The sharp selloff from the 3,285 resistance area since 17 Jan 2020 suggests the downtrend has resumed. The bearish break below the uptrend line and 200-day moving average on 28 Jan further validates the ongoing weakness.
  • From a long-term perspective, the STI is showing a bearish formation, double top rejection off the 3,285 resistance area signals further downside.
  • We expect the bearish momentum to sustain with 3,050 support. Bear in mind that if the 3,050 support fails to hold, the next support would be around the 2,960 area. See chart in attached PDF report.





LIM Siew Khee CGS-CIMB Research | https://www.cgs-cimb.com 2020-01-31
SGX Stock Analyst Report ADD MAINTAIN ADD 1.250 SAME 1.250



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