Home Capital Right Timing

Singapore and Hong Kong markets show latent strength

Goola Warden
Goola Warden5/27/2022 07:15 PM GMT+08  • 2 min read
Singapore and Hong Kong markets show latent strength
Both the Straits Times Index and the Hang Seng Index are staging temporary rebounds, with resistance-breakouts in their sights
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

By May 27, the Straits Times Index lost 10 points week-on-week to end at 3,230. Interestingly, the chart pattern is reflecting some latent strength. As a starting point, the STI is attempting to hold on to its peep above the 200-day moving average at 3,219. As a result of the STI’s steady sideways movement during the week of May 23-27, the 200-day moving average has actually risen by one point during the week. This may be a miniscule move, but it is an encouraging one.

The STI is still not out of the woods, as quarterly momentum remains in negative territory. The economic environment remains somewhat dour, with the yield on the 10-year Singapore Government Security (the so-called risk free rate) at 2.63% on May 27. While this is lower than the 2.92% recorded on May 9, it is still way above the 1.7% at the start of the year.

Resistance for the rebound stays at 3,300. The state of the indicators suggests that a move above this level is unlikely.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.
Unlock unlimited access to premium articles with less than $9 per month. Subscribe Now