Profit taking at low volume for STI today!

On 27/Apr, Singapore shares ended lower Tuesday with China stocks weighed by concern that Beijing may launch harsher measures to cool property prices.

STI ended 10.94 points (0.4%) lower at 2991.68 points with LOW VOL of 1.76 billion shares traded compared with 2.05 billion Monday. In the broader market, loser outnumbered gainer 350 to 184.  Overall STI got affected by the overnight loss of Wall Street and pulled back at LOW VOL. There is nothing to worry about for the time being since STI seems to be supporting itself well at just below 3000 over past few days.

"Clearly, it's a bit more challenging right now given the uncertainty about policy tightening and a variety of global factors," said DBS Asia strategist Joanne Goh in Singapore, noting China's property-sector tightening measures, the Goldman Sachs probe and U.S. financial-sector reform proposals.

Today Hyflux grew 1.8% to close at $3.46 with HIGH VOL of 17 million shares traded (7 times average VOL) after Minister for Environment and Water Resources Yaacob Ibrahim has reiterated that Singapore will not renew its water contract with Malaysia when it expires in 2011. This is one of the two water contracts the Republic has with Malaysia on Tuesday.

However due to the lack of confirmation from Hyflux to support the rally, it’s finally close at $3.46 forming a LONG UPPER SHADOW. This is not a good sign for Hyflux as profit taking will be expected in the next few days unless there is some news to support this evidence.

Important Resistance of Hyflux: $3.55

Immediate Support of Hyflux: $3.37

RSI: In bearish zone of 46%

My sentiment on Hyflux: Not so much we can do now. But do monitor the open price of this counter tomorrow if you are already vested in this counter.