Singapore Market October 2020 Wrap Up - CGS-CIMB Research 2020-10-30: Singapore In 5

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Singapore Market October 2020 Wrap Up - Singapore In 5

Fresh global concerns; emerging from a technical recession

  • The FSSTI closed Oct at 2,423.84 pts, down 42.78 pts (-1.73% m-o-m), amidst a second wave of COVID-19 in Europe, and pre-election jitters in the US. See the Performance of Straits Times Index constituents.
  • The Singapore government has extended bridging loans, training and support grants even as Singapore emerged from a technical recession following the lifting of the circuit breaker.
  • Excluding biomed, IPI for Sep 20 rose 8.5% y-o-y, boosted by pharma (+113.6% y-o-y) and electronics (301% y-o-y).
  • According to the quarterly data released by the Urban Redevelopment Authority (URA), 3Q20 private home prices rose 0.8% q-o-q. See Property Development & Inventory - CGS-CIMB Research 2020-10-16: Home Sales Remain Healthy In Sep20.
  • Retail rents dipped by 4.5% q-o-q although vacancy was flat at 9.6%. Office rents were also down by 4.5% q-o-q, with vacancy inching down to 12%, from 12.1% (2Q20).

Tepid earnings season; index and sector movers

Key corporate news

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Technical perspective

  • With the FSSTI down another 1.73% in Oct, wiping out the gains from earlier in the month, the bearish momentum appears to be accelerating. As the 2,570 resistance level capped the upside in the second week of Oct, the subsequent bearish move highlighted further weakness as the FSSTI broke below the Sep low of 2,448 pts.
  • Also, a more pronounced Lower High point established in Oct at 2,570 pts suggests the downtrend is back in control. As such, expect the FSSTI to trend lower to the 2,300 support in the coming weeks.
  • Any near-term rebound is likely to be capped by the overhead resistance at 2,500 pts.

See also recent reports:

LIM Siew Khee CGS-CIMB Research | Jeremy NG Choon Heng CGS-CIMB Research | https://www.cgs-cimb.com 2020-10-30
SGX Stock Analyst Report ADD MAINTAIN ADD 3.200 SAME 3.200