STI rebound on recovery optimism and lifting of restrictions
Singapore moves ahead and lift more restrictions that were enforced during the pandemic and that made the market rebound strongly on Friday. This optimism was also later confirmed after market closed for the week as the country will be removing restrictions on group sizes and allowing everyone to return to office from 26 April. The question now is will this optimism last and will it be supported by a proportionate spike in company performance. That remains to be seen but a more bullish sentiment should be observed in the coming week.
STI – Updated Daily Chart
STI rebounded on the uptrend support line from last Wednesday
STI bounced on the 9 days moving average and is likely to surpass the 20 days ma in the coming week and might test 3450 levels as well.
STI – Updated Weekly Chart
After 2 weeks of decline, the STI made a small but noticeable comeback on the back of lifting more restrictions in Singapore.
Author’s Call as of 23rd April 2022
- Unable to confirm if the optimism will last in the Singapore market as the world are still facing political instabilities
- The recent spikes might be due to investors taking refuge from other markets that are involved with the war and geopolitics
- The charts showed a rebound and a potential positive sentiment for the coming week if there are no other shocks
- Investors should be slowing down on their selling as many counters are paying out dividends in May
- The international instability continues to haunt the market and affect investor’s market sentiments.
- On top of that China’s lockdown in Shanghai also gave investors reason to hold back for the moment
- The charts are getting increasingly cautious but it looks like there will be some rebound soon because of dividends paid out in May
- Investors will be piling into stocks that are weakened or those that are paying out dividends soon
