On 01/Sept, Singapore shares end higher Wednesday as good PMI data from China helped to bolster the confidence that world economy is moderating and not declining.
STI ended higher at 2982.83 (1.1%) with regular VOL of 1.66 billion shares traded compared with 1.67 billion shares Tuesday. In the broader market, gainers outnumbered losers 328 to 134. Today STI achieve a good rally with 71% of stocks ended positive despite regular trading activities. It seems that the China PMI data certainly heighten the confidence of investors.
AmFraser Securities strategist Najeeb Jarhom said the 3,000 level “should be seen soon, with an even chance (this) year’s high of 3,043 being tested as well.”
However, Jarhom noted uncertainties over the U.S. economy linger and said Wall Street could come under pressure in October or November if the Obama administration acts late on providing fresh stimulus measures.
Headline in STI
China government reported their Purchasing Managers Index rose to 51.7 in August from 51.2 in July. A separate PMI calculated by HSBC rose to 51.9 from 49.4, rebounding beyond the 50 threshold level and into growth.
Technical Analysis on STI
Immediate Resistance of STI: 3000
Immediate Support of STI: 2950
MY sentiment on STI: STI may possible re-test 3000 resistance within this week; however we would not encourage buying unless this psychological resistance is breach at high volume.
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