Local investors have access to the SPX via the SPDR S&P 500 ETF. The chart pattern looks somewhat like a head-and-shoulders top formation with the neckline at US$437.1 ($596.5), which is also a potential breakdown level.
The Straits Times Index (STI) as represented by the STI ETF continues to languish below its 50-, 100- and 200-day moving averages, reflecting the doldrums that local stocks are in. The languorous sentiment around the local market was underscored by the resignation of Mohamad Ismail, Singapore Exchange’s (SGX) global head of equity capital markets, who is reported to be departing. At the same time, the SGX is focusing on derivatives.
Based on SGX’s equity performance, it appears that equities are somewhat neglected. This is clear when the STI’s performance is measured against the S&P 500 Index (SPX).
