Plenty of catalysts that could fuel STI's climb
MUST all good things come to an end? Based on the Straits Times Index's (STI) track record, what goes up must come down, but perhaps the climb this time round can last a little longer and further, given the right catalysts.
As Margaret Yang of CMC Markets Singapore puts it, the 3,300 point is a psychological and technical resistance level for the STI and breaking out above this critical point paves the way for more upside towards the previous high of 3,354 points.
If it gives any confidence at all, the STI gained 16 points on Friday to finish at 3,319.11, which is above the technical resistance level. The week's gains were mainly led by the banks, whose prices were driven by the rationale that higher interest rates signal wider net interest margins and therefore earnings. Other factors included upbeat gross domestic product (GDP) readings and the Monetary Authority of Singapore's (MAS) policy decision.
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