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STI will maintain current range in next month: DBS
By PC Lee / theedgemarkets.com | November 30, 2015 : 5:07 PM MYT
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SINGAPORE (Nov 30): The Straits Times Index will likely stick within the 2,825-3,030 range in the next month, with attention on external central bank action, DBS says in a note.
The bank’s technical analysis indicates a narrow trading range, with “bargain hunting” opportunities below 2,825.
It notes that the beginning of an interest rate increase cycle -- which looks likely to start with the US Federal Reserve in December -- typically heralds an index correction in the initial two or three months, before a recovery is seen.
“Attention this week is drawn to the European Central Bank policy meeting on Thursday and the release of US November job numbers on Friday,” DBS writes. The STI trades at 2,859.71 on Monday afternoon, flat on its previous close.