Banks have done their show and tell and STI is getting excited

Banks has done its show and tell last week and the general reaction towards the dip in performance and minor cuts in dividends are more positive than negative. This is because the share prices of banks have been heavily discounted from the highs before 2020 therefore many investors have been on standby until the 1H results are out. Coupled with the ever-climbing US indices, STI is showing signs of resilience at around 2530 levels. Check out this week’s special feature as well for a potential trade but as usual please dyodd.

STI – Updated Daily Chart

2500 support held steady last week STI tested the support level at 2500 as mentioned in last week’s STI market outlook. Though the rebound is not substantial, it does show that STI is trying to recover as it regains confidence from positive profits from banks (major components of STI) who are crippled by razor-thin margins....