Monday, April 06, 2020

STI gap up above its down trend channel to move higher to close at 2470.59 (+3.4%, 81.30 points).

SP 500 gap up above its 20ma from its parallel channel mid-line to move higher to test its channel top.
DJIA broke out of its current consolidation to test its hourly 200ma.
Nasdaq closed higher than its consolidation zone too. It is close to its parallel channel top.
R2000 from at the bottom of its parallel channel to closing above its mid-line.

INDEX : STRAITS TIMES   2,470.590   +81.30 (3.40%)
Prev : 2,389.290	High : 2,477.310	Low 2,411.270	Open 2,429.580

STI gains 3.4% as market absorbs Solidarity Budget measures

06 Apr 2020 17:47

By Claudia Tan

THE Straits Times Index (STI) ended Monday up 81.30 points or 3.4 per cent at 2,470.59 points.

This comes as the government on Monday unveiled an unprecedented S$5.1 billion Solidarity Budget to help cushion the impact of the ?circuit breaker? distancing measures on the economy.

The best performer among the index?s constituents was agribusiness firm Wilmar International, which gained 8.3 per cent or S$0.26 to S$3.40.

Among other stocks that recorded gains was CapitaLand, which rose S$0.12 or 4.6 per cent to S$2.74. The firm announced on Monday that it has reopened all its malls in China, which had been previously shut for the country?s coronavirus lockdown.

Singapore banks, which were among the hardest hit stocks last Friday on the back of rate slashes, also recorded gains. DBS edged up S$0.48 or 2.7 per cent to S$18.40; UOB rose S$0.68 or 3.6 per cent to S$19.48, while OCBC gained S$0.33 or 3.9 per cent to S$8.71.

All but two - ComfortDelGro and Singapore Press Holdings (SPH) - of the blue-chip index?s 30 components ended in the black. ComfortDelGro fell S$0.02 or 1.4 per cent to S$1.41; SPH saw a S$0.03 or 1.9 per cent decline to S$1.55.

Advancers outpaced decliners 300 to 121 for the day, with 1.51 billion shares worth S$1.43 billion changing hands.

The STI?s performance was in line with other Asian markets, with sentiments lifted as some countries report falling death rates.

This includes China, which has been experiencing some economic recovery. But economists at Moody?s Analytics said in a report on Monday that it will take time for domestic demand to return to pre-Covid-19 levels and foreign demand remains weak.

?Global demand is set to halt for much of 2020, which will likely prove to be China?s biggest obstacle in its pursuit of a V-shaped recovery,? noted the Moody?s Analytics report.

Source: Business Times Breaking News