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.
