Weekly Wrap

Major Indexes performance for the week ended Feb 22 below:

Major indexes slid in the week, only STI and DJI managed to stay just positive. Shanghai stock SSE posted biggest decline since its rebound last Dec, with 118.2points or 4.9% down, and HSI followed with 662.1 or 2.8% drop. On the concern that China government step up with new property curb.

It appears to me the drop is just a normal retracement after recent run-up for SSE, it still has over 18% up since its bottom out last Dec. It would provide us buy-on-dip opportunity.

STI, however showing resilience to the downside, it has been range trading from 3254-3320 in the past four weeks. The three banks i.e DBS, UOB and OCBC and Singtel are lifting the index from decline. STI trade beyond this range 3254-3320 would provide us clear direction in coming weeks.