Singapore’s investors had mixed earnings results to digest over the weekend, with SIA Engineering, Comfort Delgro and Genting Singapore delivering better-than-expected Q1 results, while UOL and ST Engineering missed their targets.
SingPost surprisingly posted a net loss of $65 million in the fourth-quarter, mainly due to a huge impairment charge of $208.6 million on its investment in TradeGlobal.
Mixed results could weigh on market sentiment after the euphoric rally of the last few weeks, fueled by positive earnings surprises. Technically, the Straits Times Index is facing strong resistance at the psychological level of 3,300 points.
The volatility index dived into extremely low territory after the French election, showing loose market sentiment and a lack of vigilance. Safe havens like gold and silver, on the other hand, rebounded last week, from four-month lows.
Technically, silver has found some support at the US$16.20 area and a technical rebound could start from here. The momentum indicator DMI (14) has started to converge, indicating depleting selling force. The Fibonacci retracement suggests that its immediate support and resistance levels could be found at $15.70 and $16.82 (61.8% Fibonacci level) respectively. Last but not least, the SuperTrend (2, 10) is still in a bearish trend as shown by the red color. A reversal of this is needed in order to complete a full rebound.
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