Daily Markets Briefing: STI up 0.4%

Index likely to consolidate in a tight range, says analyst.

OCBC Investment Research said:

Although the STI registered a 0.4% gain yesterday, it was significantly off its intraday high; this suggests that the tone remains rather cautious at the moment.

As such, the index could continue to consolidate in a tight range.

For now, we still see the immediate base at the 3280 resistance-turned-support. Below that, the subsequent base lies at the 3250 minor trough.

On the upside, the immediate resistance is still pegged at the 3330 key peak, followed by the subsequent resistance at the 3400 psychological hurdle.

IG Markets Singapore noted:

Singapore’s STI looking moving up along with other indices easing losses from last week’s trading sessions but failed to close above the 3300 mark,+12pts, close 3296. The buoyant mood from the U.S., could trickle down with Hong Kong and Singapore markets open higher.