In the near term, the outlook of the FTSE REIT Index looks more interesting that that of the STI. The REIT Index has formed an ascending right triangle which is likely to be a continuation pattern in an uptrend. The breakout level is at the thrice tested 717 level - which is near a previous resistance area at 720. Technical indicators appear fair. Quarterly momentum and 21-day RSI are trending sideways. Directional movement indicators are neutral to positive and look set for a positive turn. Against this background, it is possible for the REIT Index to break above the 717-720 resistance area, setting an upside of around 800.
In SGD, based on Bloomberg data, the Straits Times Index outperformed the S&P500 Index in the course of the past five years. Market participants including the writer of this missive finds that difficult to believe. But the Singapore Exchange and its most followed benchmark seems to have done a pretty good job, despite the focus by the listed company the Singapore Exchange’s focus on derivatives and FX to maximise profit.
