Singapore Market November 2020 Wrap Up - CGS-CIMB Research 2020-11-30: Singapore In 5

Singapore Stock Strategy - CGS-CIMB Research | SGinvestors.io DBS GROUP HOLDINGS LTD (SGX:D05) OVERSEA-CHINESE BANKING CORP (SGX:O39) UNITED OVERSEAS BANK LTD (SGX:U11) SINGAPORE AIRLINES LTD (SGX:C6L)

Singapore Market November 2020 Wrap Up - Singapore In 5




3Q20 GDP contracts less severely than expected; optimism growing

  • The Straits Times Index (STI) closed November 2020 at 2805.95, up 382.11 or 15.8% m-o-m, amidst growing optimism on the global economy – US voters limited Trump’s presidency to a single term, and news of two potential viable COVID-19 vaccines.
  • Singapore’s GDP contracted at a slower rate of 5.8% y-o-y in 3Q20, against the government’s advance estimates of -7.0% y-o-y, bolstered by export-oriented biomed and electronics segments which offset weaker service and construction segments.
  • Oct NODX, however, contracted for the first time since May 2020 (-3.1% y-o-y) as Huawei sanctions and lockdowns in regional trading partners hurt Singapore exports.
  • Property sales declined further, down 51.7% m-o-m in Oct, due to a government clampdown on the re-issuing of options to purchases by developers, amidst few new project launches. See


Strong earnings season; market EPS upgrade



Key corporate news



Research reports that you should not miss



Technical perspective

  • Since the bullish crossover signal between the 20-day and 60-day moving average was triggered on 9 Nov (see Fig1 in PDF report attached below), the Straits Times Index (STI) has been trending higher with surging momentum.
  • The breakout above multiple key resistance levels have also effectively turned the trend bullish. However, in the next couple of weeks, the STI could enter a correction phase as the bullish momentum appears overstretched.
  • The 15.8% rally in Nov has driven the STI’s Relative Strength Index (RSI) to an extreme overbought high of 83. Historically, the STI tends to enter into a period of correction when the RSI exceeds the 70 overbought level. Therefore, we expect the ongoing correction to take the STI down to the 2,635 – 2,700 support level before the uptrend resumes.
  • The next leg higher into the uptrend will likely see the FSSTI aiming for the 3,000 – 3,044 resistance.





LIM Siew Khee CGS-CIMB Research | Jeremy NG Choon Heng CGS-CIMB Research | https://www.cgs-cimb.com 2020-11-30
SGX Stock Analyst Report ADD MAINTAIN ADD 28.350 SAME 28.350
ADD MAINTAIN ADD 12.520 SAME 12.520
ADD MAINTAIN ADD 27.720 SAME 27.720
ADD MAINTAIN ADD 4.570 SAME 4.570



Advertisement



MOST TALKED ABOUT STOCKS / REITS OF THE WEEK



loading.......



ANALYSTS SAY


loading.......