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 Support and the fail safe level is at 3.190 below which the upside is no longer valid.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.

UOB and KrisFlyer launch credit card for pairing with savings account to earn air miles from spending

SINGAPORE (Apr 23): United Overseas Bank (UOB) and KrisFlyer have launched the KrisFlyer UOB Credit Card. This is a credit card which can be combined with a savings account to earn bonus KrisFlyer miles when customers spend and save. With the KrisFlyer UOB Credit Card, cardmembers will earn three KrisFlyer miles on their everyday spending, such as on dining and online food delivery, online shopping and public transport. KrisFlyer is Singapore Airlines Group’s frequent flyer programme. According to UOB and KrisFlyer, these everyday spend categories were chosen as they were the fas....
Read More >>

ComfortDelGro deepens footprint in Australia with A$28.3 mil bus acquisition

SINGAPORE (Apr 23): ComfortDelGro Corporation announced Tuesday it is acquiring Australian bus service operator B&E Blanch for A$28.3 million ($27.5 million). B&E Blanch, which has a fleet of 48 buses and coaches, runs scheduled route and school bus services in New South Wales (NSW). The company operates as Blanch’s Bus Company and Brunswick Valley Coaches. The latest acquisition is ComfortDelGro’s sixth acquisition in Australia in the last 12 months, and its fifth in NSW. ComfortDelGro says the purchase consideration, which is approximately 7.6 times EBITDA, will be ....
Read More >>

UIC posts 35% higher 1Q earnings of $81 mil on higher contribution from associated companies

SINGAPORE (Apr 23): United Industrial Corporation (UIC) declared earnings of $81.1 million for 1Q19, 35% higher than $60.2 million in 1Q18. This came on the back of a 12% increase in revenue to $185.3 million from $165.7 million a year ago, mainly due to higher sales of trading properties with higher sales achieved for the group’s residential development projects; higher contribution from investment properties; and higher contribution from information technology operations. The group’s hotel operations remained stable. As cost of sales also increased by 17% y-o-y to $105.5 million, g....
Read More >>