Singapore Straits Times Index - Towards 2,100 points

The Straits Times Index (STI) fell again for another 92.24 points or 3.8% as at 11.33am today following the heavy deline on the US Dow Jones Industrial Average and the rest of the financial markets. The STI is currently at 2,327.05 points.


Monthly STI chart as at 11.33am, 18 September 2008 using NextVIEW Advisor. Click on chart to view enlarged chart.

The STI has a downside target of 2,100 points based on an ABC correction since the high in October 2007. A 61.8% Fibonacci retracement is at about 2,200 points. Therefore, the STI may only find support between 2,100 and 2,200 points. It is heading that direction but when it gets there, we need to find any evidence of support whether the market is bottoming out.

Many anxious insurance policy holders and investors thronged AIG in hot sunny Singapore to seek clarification and many vowing to terminate their policies. The same thing happened at AIA.


Commentary and Analysis by Benny Lee