Singapore Press Holdings has broken out of resistance at $1.80 on a Friday, which implies that traders (and investors) are comfortable holding on to the shares over a weekend. The 50-day moving average had turned up as the week starting July 19, 2021 got underway. Volume expanded but it does not match the sell-down that took place on May 5 this year, when 92 million shares changed hands.
On July 23, around 9 million shares changed hands. Average daily volume in the past three months stood at around 12 million, which is higher than the average daily volume of 11 million recorded for the three months to January 2021. Support is at $1.80, below which the breakout should have failed. The next resistance appears at $2.
SPH’s circular on its restructuring is likely to be issued in August or September. Market talk is rife that new investors into SPH are likely to be announced and these could include Keppel Corp, with which SPH has some joint ventures and agreements, and/or Mapletree Investments.
Despite some concerns and negativity on the economic and fundamental outlook, the Straits Times Index -which ended the week at 3,157- continues to hold above its 50- and 100-day moving averages which are at 3,145 and 3,138 respectively. The chart pattern and the stance of the moving averages continue to signify strength. Quarterly momentum is at a several-times tested resistance at its equilibrium line. A breakout by momentum would propel prices higher. Directional movement indicators are neutral. The breakout level for the index is at 3,178. It is tempting to go with the breakout scenario. As a guide, support has been established at 3,092.
