Market Review for STI:
Share prices opened higher at 3296.540 with STI 5.56 points up. Singapore's economy contracted in April to June for the first time in seven quarters, hit by a sharp drop in manufacturing activity and the drop to alter the outlook for the city-state's tight monetary policy. Gross domestic product shrunk by 0.8% in the 2nd quarter on a seasonally adjusted and annualised basis. The impact is eventually seen in the market. It gave a closing at 3291.420 below the opening.

Market forecast for STI:
Since, very small movement is seen in the market from last week. We may expect the same for further more time, moving in a range of 3265-3295. The level of 3300 may act a level from which the index may boost.

Technical indicators:
RSI is above the center line @56.503. CCI is @130.849. Indicators are also not that supportive for the index.

Important Factor for today:-

• Non-residential deals will continue to drive investment activity in Singapore for the rest of this year.

• Viking offshore and Marine have won a 50 month contract worth US$32 million. Shares in the firm raised 2.4% (0.3 Singapore cents to 12.8 cents).

• CCM Group will hold an extraordinary general meeting (EGM) on Aug 5 to get shareholder’s nod for a rights issue, change its name and diversify into information technology.

• OLAM International, Qian Hu, ST Engineering, Otto Marine and Ezion all had recent developments that could affect trading activity. Olam International banged its US$2 billion euro medium term note programme to US$5 billion. Qian Hu’s net profit for its 2nd quarter ended June 30 was $22,000, down 73.5% from a year ago.

• An arm of ST Engineering, ST Aerospace has won new contracts of five year agreement with a regional US airline for heavy maintenance of 42 Embraer E-170 and E-175 aircraft at the aerospace sector’s San Antonio facility worth S$520 million in the 2nd quarter of 2014.