(Updated 21/2/99)

N.B. Above Chart is abstracted from Metastock Program

Last week's STI index had performed exactly as per what we had expected. It started on a weak platform but managed to climb back up and closed at 1374.3, near the high for the week. It seems to me that STI has now managed to find its short term bottom at 1281 and is set to move higher in the coming week. Although the worst than expected January's trade figure that announced on Saturday may have some negative impact to the market, I think the reaction will be rather minimal. As for next week, the market will continue to be influenced by Dow Jones' performance, as well as the regional markets sentiment and our Friday's Budget. Expect market to open on a slight weakness this Monday, but then bargain hunting will emerge and push the STI up towards the later part of the week. STI should trade in a range of 1338-1425, with more upside bias. However, any potential rally would be capped at 1425, thought a maximum potential to reach 1450-1480 level is still possible.

It looks to me that we have now completed wave (A) of ((B)) and is now going through wave (B) of ((B)), which is expected to be in a form of abc, and that the wave c will probably end between 1150-1200 level.

Alternate count, suggest that we have just completed Wave 5 of Wave (1). A completion of Wave (1) will follow a corrective Wave (2) which will bring the index down towards 1,150 and possible 1,030.

Events To Watch For The Coming Weeks/Months

1. 1.  Latin America currencies and stocks movement.
2. The movement of US stock market and T-bond.
3. Hang Seng Index movement.
4. Nikkei and JGB movement.
5. The stability of Regional and Singapore currencies (especially Indonesia Ruppiah)
6. Regional stock markets movement.
7. Singapore 3 months Inter-bank rate.
8. Friday's announcement of Singapore Budget.