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Oil and Gas play dropping Straits Times Index; What next?

Straits Times Index pulled down by Oil and Gas play

Straits Times Index STI is down 1.17% at the moment in line with weakness in major stock markets. Internally the weak hands are those in the Oil and Gas sector. Leading the fall are:

A. Keppel Corp – 3.13%
B. Sembcorp Indust – 2.41%
C. Ezion – 6.45%

STI heatmap

Winners and losers of the day

This should not be a surprise since crude oil is making new 52-week low and in its 4th month downtrend.

WTI in 4th month correction with new 52-week low

WTI weakness is a story that is long unfolding

However there is no bullish reversal pattern so we expect the trend to continue although there may be some retracement because of short-covering or profit taking.


The real market movers

Coming back to the stock market however, investors should really be worried because the big boys (largest stocks by market capitalisation) have not made their move yet.

The largest ones are (see heatmap):

  1. Singtel
  2. Jardine Strategic
  3. Jardine Matheson
  4. DBS
  5. OCBC
  6. UOB

The next risks to the market will come from financial risk and ebola (where damage to the stock market and economy comes not only from infection and pandemic but also to social distancing policies that are meant to curb its spread):

Too-Big-to-Fail Banks Face Up to $870 Billion Capital Gap

Too big to fail is likely to prove a costly epithet for the world’s biggest banks as regulators demand they increase holdings of debt securities to cover losses should they collapse.

The shortfall facing lenders from JPMorgan Chase & Co. to HSBC Holdings Plc could be as much as $870 billion, according to estimates from AllianceBernstein Ltd., or as little as $237 billion forecast by Barclays Plc.


Second Texas Nurse Tests Positive for Ebola

The Ebola crisis in the U.S. took another alarming turn Wednesday with word that a second Dallas nurse caught the disease from a patient and flew across the Midwest on an airliner the day before she fell ill, even though government guidelines should have kept her off the plane.

Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’.

“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.

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