Singapore Market May 2020 Wrap Up - CGS-CIMB Research 2020-05-29: Singapore In 5

Singapore Market May 2020 Wrap Up - CGS-CIMB Research | SGinvestors.io MAPLETREE LOGISTICS TRUST (SGX:M44U)

Singapore Market May 2020 Wrap Up - Singapore In 5

More money to ease the pain

  • The FSSTI closed May at 2,510.75 pts, down 113.48 pts m-o-m (-4.32%), giving back much of last month’s rebound.
  • The government unveiled a fourth package (S$33bn) to preserve jobs and support the economy, bringing the total economic stimulus to S$92.9bn. See Singapore Strategy - CGS-CIMB Research 2020-05-27: #4 Help Package ~ More Cushioning.
  • Singapore’s Apr 20 NODX grew 9.7% y-o-y, due to a sharp increase in biomed manufacturing output, offsetting a decline in electronics. FY20 NODX is still expected to decline with official forecasts from Enterprise Singapore downgraded to between -1% and -4%, from -0.5% to 1.5% previously.
  • Revised 1Q20 GDP came in at - 0.7% y-o-y, vs. advance estimates of -2.2% y-o-y. Our economist has revised our end-2020 GDP forecast to -4.9% (from -6.8% previously) on the back of stronger biomed performance.
  • According to Urban Redevelopment Agency (URA) data, Apr 20 home sales were down 58% m-o-m and 62% y-o-y as circuit breaker measures hit viewings. The URA price index for 1Q20 was down 1% q-o-q; the core central area (CCR) experienced the biggest decline, down 2.3% vs. a 0.4% decline in the rest of central region (RCR) and a 0.5% fall in outside central region (OCR).

Poor 1Q20 earnings season; MSCI Singapore Index rebalancing

Key Corporate News

FSSTI - Technical Perspective

  • The FSSTI edged lower in May, falling 4.3% as the bears gain momentum. Since the FSSTI formed a Lower High (LH) in Apr at 2,671 pts, each rally along the way failed to breach a new high. Instead, the FSSTI has been forming a series of Lower Highs (LH) in May, which suggests the bearish momentum is accelerating.
  • Moreover, the FSSTI has closed below the 20-day moving average over the past seven trading days, which is a further sign of weakness. Thus, expect further downside to the 2,380 pts support area, followed by the 2,200 level when the FSSTI breaks below the current floor at 2,500 pts.
  • The downtrend should remain capped by the downtrend line and 2,670 resistance area.
  • See STI chart in PDF report attached below.

LOCK Mun Yee CGS-CIMB Research | EING Kar Mei CFA CGS-CIMB Research | https://www.cgs-cimb.com 2020-05-29
SGX Stock Analyst Report HOLD MAINTAIN HOLD 1.630 SAME 1.630