Right timing: STI breaks out as momentum firms

Right timing: STI breaks out as momentum firms

By: 
Goola Warden
15/02/19, 11:28 pm

SINGAPORE (Feb 15): The Straits Times Index moved above its 200-day moving average at 3,223 on Feb 15. The earlier break above 3,190 indicates a target for 3,420. In the near term, resistance appears at 3,308. Support and the fail safe level is at 3.190 below which the upside is no longer valid. Volume moved up modestly and could be insufficient to sustain a protracted rally.

Still the 50- and 100-day moving averages are positively placed and rising. Annual momentum has flattened and two year momentum has found support at its equilibrium line. These indicators are likely to support the index.
In addition, ADX has turned up, and DIs are positively placed, suggesting that further gains are likely in the short and medium term.

Starhub could ease further
Starhub’s share price fell below its moving averages and is likely to head towards its low of $1.60 attained in June 2018. A break below this level would indicate a new downside objective.


Volume expanded notably, and quarterly momentum fell sharply. Short term indicators are not particularly oversold, suggesting further declines.
Based on a one year high of around $2, Starhub’s historic dividend yield stood at 8%. Based on FY2019’s dividend, the yield at the current price of $1.67 is 5.38%. This may suggest that prices could continue to ease confirming the technical outlook.

Treasure hunting

British collector and expert Harry Fane talks about what it takes to be the world’s foremost authority on vintage Cartier creations and how to spot a good investment buy at his Vintage Cartier Tank watch exhibition at Dover Street Market Singapore (May 20): Harry Fane’s love affair with Cartier began at the tender age of 17. It was the 1970s and his best friend showed up one day, decked out in two must-have items of the era: a pair of Gucci shoes with a gold buckle — “the height of fashion at the time” — and a Cartier watch. “I remember going, ‘Gosh, I really want both of....
Read More >>

Next stop: The interchange of public and private good

SINGAPORE (May 20): Two-minute intervals between trains. Fewer breakdowns. Clean, new buses running at a higher frequency. Bright LED screens displaying details of stops on both buses and trains. To many commuters who are enjoying these benefits, the meltdown of Singapore’s transport system in December 2011, and again in July 2015, is a distant memory. Certainly, services have improved significantly. There are new trains and buses, while existing ones have been spiffed up. There has been an overhaul of the older rail systems, presumably including fixing the grips for the electricity rail ....
Read More >>

Failed Innopac deal portends mining magnate Gutnick’s woes in Australia

SINGAPORE (May 20): The Australian Securities and Investments Commission (ASIC) is seeking judicial permission to wind down mining company Merlin Diamonds. The regulator is also probing into whether its chairman Joseph Gutnick failed in his duties. Gutnick, who is known as “Diamond Joe”, is under investigation for a A$13 million ($12.3 million) loan made by Merlin to AXIS Consultants, a private company linked to him. Merlin shares have been suspended from trading since October 2018. ASIC is seeking an order to appoint Deloitte to liquidate Merlin, owner of the Merlin Diamond Mine Pro....
Read More >>