Brace for more losses today.
The Straits Times Index (STI) ended 9.61 points or 0.33% lower to 2901.7 on Wednesday, taking the year-to-date performance to +0.66%.
According to OCBC Investment Research, this came as U.S. stocks closed modestly lower, with the Dow industrials and Nasdaq Composite retreating from all-time highs set a day earlier.
Meanwhile, eight out of eleven S&P 500 industries ended lower, with Real Estate (-1.32%) leading the declines while Energy (0.16%) led the gains.
"The weakness on Wall Street overnight could weigh on local sentiment, potentially extending STI’s 0.3% pullback," the brokerage firm said.
Here's more from OCBC:
With today’s tone set to be likely bearish, we could see the index breaking its 2900 immediate support with ease, and head for its 2870 subsequent base.
On the upside, 2935 is the immediate resistance, followed by the 2970 next resistance level.
Overall volume slipped further yesterday, dropping 15.7% to 1.4b units traded, and the total value dipped 20.0% to S$0.8b, while average value/unit fell 5.1% to S$0.56.
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