- We maintain a trading range with STI's near-term support at 4700-4760 and resistance at 5000-5040, as we continue to monitor developments in the Iran war. We maintain our STI year-end target of 5,250.
Safe haven affirmed in March
- - Read this at SGinvestors.io -
STI Outlook – Safe haven or ‘last shoe’ to drop?
- Index heavyweight banks have played a key role in STI’s relative outperformance versus regional indices, as investors focused on potential NIM expansion rather than growth risks. While this narrative has been supportive for banks (and the STI), supported by Brent’s 55% rise to US$113pbl since the war started, the positive correlation between interest rate and oil prices is likely to weaken or even turn negative over time.
- - Read this at SGinvestors.io -
- The resumption of oil flows through the Strait of Hormuz is key to stabilizing sentiment. Let’s keep our fingers crossed that there will be a move by warring parties to de-escalate in April.
April Strategy – The war playbook: Rotation, resilience, reflation risk
- Read more at SGinvestors.io.
