After a small scare, time for a rally but how long will this rally last?

STI has been widely known as a sleepy index for the past months. Basically, as a trade reliant nation with a insanely small domestic market, it is no wonder that STI is lacking behind other major indices with larger markets. However with lower daily reported infections and resuming of work for the migrant workers, Singapore is beginning to restart its economic engine for real. Also, after all our disappointing 1H reports are out, investors are feeling the bottom as well because the positive impacts of government subsidies has lessened the losses of businesses by a significant amount. Lastly, we anticipate another hype in the market as the government will be announcing another stimulus package to extend existing measures to support businesses affected by the pandemic.

STI – Updated Daily Chart

STI closed above 9 and 20 days MA at closing...