SGX IForex Recommendations

TRADING TIPS :

GBP/USDeased 0.12% to 1.5342 from around 1.5358 ahead of the data,the services purchasing managers’ index ticked down to 56.7 from 57.2 in January. Economists had expected the index to rise to 57.5.On the index, a level above 50.0 indicates expansion in the industry, below 50.0 indicates contraction.“Although the rate of expansion slowed in the vast services economy, growth has picked up in both manufacturing and construction,” Chris Williamson, chief economist at survey compilers Markit said.”The three PMI surveys collectively indicated a slight acceleration in economic growth for a second successive month in February as a result, consistent with GDP growth picking up to 0.6% in the first quarter.”

INTRADAY OUTLOOK

Support: 1.5294

Resistance: 1.5364

RECOMMENDATION:

1. Buy GBP/USD Above 1.5366-TG: 1.5386/1.5416 SL 1.5336

2. Sell GBP/USD Below 1.5292-TG: 1.5272/1.5242 SL 1.5322

INTRADAY OUTLOOK

Support: 1.1096

Resistance: 1.1165

RECOMMENDATION:

1. Buy EUR/USD Above 1.1167-TG: 1.1187/1.1217 SL 1.1137

2. Sell EUR/USD Below 1.1094-TG: 1.1064/1.1034 SL 1.1124

SGX Stock Recommendations

MARKET UPDATES :

• The Straits Times Index (STI) ended -6.58 points lower or -0.19% to 3415.53, taking the year-to-date perform- ance to +1.50%.

• The FTSE ST Mid Cap Index gained +0.09% while the FTSE ST Small Cap Index gained +0.15%. The top active stocks were SingTel (-0.48%), DBS (+1.09%), UOB (-0.43%), ComfortDelGro (unchanged) and Noble (-0.99%).

• The outperforming sectors today were represented by the FTSE ST Technology Index (+1.53%). The two big- gest stocks of the FTSE ST Technology Index are Silverlake Axis (+2.86%) and STATS ChipPAC (unchanged). The underperforming sector was the FTSE ST Real Estate Investment Trusts Index, which declined – 0.54% with CapitaMall Trust’s share price declining -1.85% and Ascendas REIT’s share price declining -1.59%.

• The three most active Exchange Traded Funds (ETFs) by value today were the IS MSCI India (-0.12%), IS- HARES USD Asia HY Bond ETF (-0.75%), DBXT MSCI China TRN ETF (-2.30%).

• The three most active Real Estate Investment Trusts (REITs) by value were CapitaMall Trust (-1.85%), Ascen- das REIT (-1.59%), Suntec REIT (+0.52%).

• The most active index warrants by value today were HSI25000MBeCW150330 (-26.87%), HSI24400M- BePW150330 (+25.00%), HSI25000MBeCW150429 (-13.74%).

SGX Singapore News Update

Five stocks with India business average 6.2% YTD gain


An important week for India capital formation has included the first full year budget of the Modi Government, and another surprise interest rate cut taking the RBI repurchase rate to 7.5%.
Among 30 SGX-listed companies with India businesses, the largest capitalised that apportion more than 10% of revenue to India are Ascendas India Trust, Religare Health Trust, India Bulls Property Trust, Sarine Technologies and Cordlife Group.
In the year thus far, four of these five stocks have generated gains, while one has declined in price. The average gain of the five stocks has been 6.2% and they maintain an average dividend yield of 3.7%. Meanwhile the iShares MSCI India ETF is the most actively traded ETF on SGX and the SGX Nifty Index Futures has set a number of new participation records in 2015 to date.



Recent Economic Developments

It has been a week of keystone fiscal and monetary policy initiatives in India.

The first full year budget of the Modi Government was presented on Saturday. Budget highlights maintained the five major economic challenges for India were “Agricultural income under stress, increasing investment in infrastructure, decline in manufacturing, resource crunch in view of higher devolution in taxes to states and maintaining fiscal discipline”.

Accordingly, the statement noted that “the journey for fiscal deficit target of 3% will be achieved in three years rather than two years. Nevertheless KPMG India maintained this week that the Fiscal deficit of 4.5% of GDP in FY14 is lower than the budgeted target of 4.8% of GDP. On the coffer front, corporate income tax is to be lowered to 25% from the current 30% over the next four years.


On the Financial Market front, KPMG India have highlighted a number of key budget proposals, including:
Non-Banking Financial Companies (NBFCs) registered with the Reserve Bank of India (RBI), with asset size of INR5,000 million and above, would be considered for notifications as a ‘Financial Institution’ in terms of the SARFAESI Act, 2002 enabling them to fund SME and mid-corporate businesses;
Merging the Forwards Markets Commission with SEBI. Foreign Investments in Alternate Investment Funds to be allowed;
Distinction between different forms of foreign investments, especially between Foreign Portfolio Investors and Foreign Direct Investors to be done away with;
Tax free infrastructure bonds for the projects in the rail, road and irrigation sectors; and
A regulatory reform bill proposed that would bring out a certainty and clarity across various sectors of infrastructure.

Complementing the fiscal initiatives, yesterday the RBI surprised markets with an intermeeting 25bps rate cut to bring the RBI repurchase rate to 7.5%, from 7.75% previously. This was the second rate cut of the year, following the other intermeeting rate cut on 15 January.