Analysts and investors are likely to pore over the pros and cons of an unpopular restructure, and ponder why shareholders’ equity needs to be taken out of Singapore Press Holdings such that net asset value falls from $2.24 to $2.08 per share.

As a result, the chart looks terrible. Prices have fallen below a top-like pattern, setting a downside of $1.36 to $1.40. Coincidentally, the twice tested $1.40 level is also a support level. The breakdown level is $1.74, and this is likely to pose formidable resistance at some time in the future, when the technical condition is sufficiently benign for prices to recover. In the meantime, expect a further drop to the downside. Thereafter, prices may bounce and then settle down to weeks of sideways meandering.

SEE:The STI beats us but we beat the rest

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