The Singapore market continued to fall during the week of Nov 29-Dec 1, partly because of global events including the emergence of the Omicron variant, but it also fell partly due to idiosyncratic factors. Sea Inc’s weightage in the MSCI Singapore Index was raised to 50% on Nov 30, causing the Singapore blue chips to be re-weighted downwards to make way. Hence the sharp one-day fall which took the STI to 3,041.  

Since then the Straits Times Index has stabilised, but the damage has been done. The STI has fallen below its moving averages and a support. It is now forming an ascending triangle. Generally this is a bullish continuation pattern. (In the STI’s case, the pattern is unlikely to indicate a bullish continuation.)

To negate any decline, the index needs to regain at least its 200-day moving average, currently at 3,136.

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