Profit taking but selling pressure contained for STI today!

On 11/May, Singapore shares end lower Tuesday as worries over further policy  tightening by China resurfaced after the economic data shows consumer and property prices rise despite the tightening earlier ago.

STI started higher following the overnight gain from Wall Street but falls after the announcement of China’s consumer prices rose 2.8 percent in Jan to April which beats the forecasts of 2.7 percent increase and the highest since October 2008.

In addition, another data also showed that the China property prices continued to gains 2.8% despite recent tightening measures by government.  

STI ended 22.81 points (0.8%) lower at 28857.67 with 1.81 billion shares traded compared with 1.76 billion Monday. In the broader market, loser outnumbered gainer 370 to 146. Overall investors are starting to take some profit off the tables though the selling pressure is still contained.

Headline in STI

Today SIA reported that a codeshare agreement with Spanair has been signed which allows SIA customers to fly on Spanair's services between the following city pairs: Barcelona and Madrid, Barcelona and Palma Mallorca, and Barcelona and Bilbao effective from 17 May.

Important Resistance of SIA: $15.20

Immediate Support of SIA: $14.30

RSI: In bearish zone of 33%

MY sentiment on SIA: Above news do not have much impact on SIA thus we would not comment.