Technical View
STI, Biosensors, SPH

Straits Times Index: Bottoming out?

The technical bounce in the Straits Times Index (FSSTI Index) took place as we had expected although it eventually gave up all of its gains to close 4 points lower to 2,570 for the previous week. Trading was highly volatile as it moved in a 2,541 – 2,697 range as price action broke through our former resistance level at around 2,600, although it eventually failed to take out the technical gap at the 2,700 area and ultimately fell below our previous 2,554 support mark.

We present an alternate Wave Count as opposed to the notion that the STI had bottomed out at 2,745. We believe that the STI is currently riding on a Wave C, although it is highly debatable as to whether this Wave may have ended. As Waves C usually travel the entire price length of Waves A, this is highly bearish for the STI as it would imply an eventual price target of 2,106. However, we also note that the 61.8% extension of Wave A (the second most probable price length of Wave C) equates to 2,552, a level which the STI is currently trading very close to.

Coupled with the shorter-term outlook with the immediate support at 2,541 – 2,560, we believe that a clear break below this area would indeed signify that the STI is set to plunge to 2,106. On the other hand, should the 2,541 – 2,560 support level hold, this would indicate that Wave C has been completed and that the STI has bottomed out.


Biosensors: Rally to continue

We previously mentioned that the technical outlook for Biosensors (BIG SP) had turned bullish while the stock eventually appreciated 2.9% during the previous week. At present, we believe that the technical picture is still positive, given that price action is currently depicting a series of higher highs and lower lows which indicate that the uptrend is still intact. Furthermore, the 14-day RSI remains far from hitting the overbought territory.

Prior to the support level at the 0.495 – 0.505 area which stays unchanged from our earlier report, we have identified another layer of support at the 0.525 mark as defined by the daily lows on 09 and 10 Sep. Our respective resistance levels also remain – as share price is currently within the vicinity of the 1st resistance area, we recommend an entry point only after the barrier at 0.550 – 0.555 is broken.


SPH: Consolidation within 4.00 – 4.20 Significance

After the bollinger bands had tightened for the most of mid-August, price action of Singapore Press Holdings (SPH SP) then broke out and violated the upper band repeatedly as both the bands widened. Currently, the bollinger bands are looking to tighten up again, indicating that a period of consolidation may be forthcoming. Additionally, the 14-day ADX has also fallen below the 20 mark which implies that there is no prevailing trend. Lastly, the 14-day RSI is presently at the mid-point of the overbought and oversold benchmark, further suggestive of a neutral inclination.

Share price should be confined to a 4.00 – 4.20 range. The resistance level is derived from the confluence of the upper bollinger band, the 100-day moving average and a series of daily highs while the support level is identified by the lower bollinger band and a series of daily lows.




DMG & Partners Research Guide to Investment Ratings

Buy: Share price may exceed 10% over the next 12 months
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Trading Buy: Share price may exceed 15% over the next 3 months, however longer-term outlook remains uncertain
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Neutral: Share price may fall within the range of +/- 10% over the next 12 months
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Take Profit: Target price has been attained. Look to accumulate at lower levels
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Sell: Share price may fall by more than 10% over the next 12 months
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Not Rated: Stock is not within regular research coverage



This research is for general distribution. It does not have any regard to the specific investment objectives, financial situation and particular needs of any specific recipient of this research report. You should independently evaluate particular investments and consult an independent financial adviser before making any investments or entering into any transaction in relation to any securities or investment instruments mentioned in this report.

The information contained herein has been obtained from sources we believed to be reliable but we do not make any representation or warranty nor accept any responsibility or liability as to its accuracy, completeness or correctness. Opinions and views expressed in this report are subject to change without notice.

This report does not constitute or form part of any offer or solicitation of any offer to buy or sell any securities, DMGAPS and its affiliates, their directors, connected person and employees may from time to time have interest and/or underwriting commitment in the securities mentioned in this report.

DMG & Partners Securities Pte Ltd is a participant in the SGX-MAS Research Incentive Scheme and receives a compensation of S$5,000 per stock per annum covered under the Scheme.

DMG & Partners Securities Pte Ltd is a joint venture between OSK Securities Berhad (a subsidiary of OSK Investment Bank Berhad) and Deutsche Asia Pacific Holdings Pte Ltd (a subsidiary of Deutsche Bank Group). DMG & Partners Securities Pte Ltd is a Member of the Singapore Exchange Securities Trading Limited.

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