Daily Markets Briefing: STI dipped 0.3%

Index likely to open flat, says analyst.

IG Markets Singapore noted:

In Singapore, the STI has been looking a little lacklustre in light of the excitement in Wall Street. The local market dipped 0.3%, reversing the gains it made mid-week to leave it at 3279.

Gambling giant Genting was a big drag on sentiment. Many have seen 3320 as a key level for our index to break, however currently we can’t move through 3300 with any conviction and keep gravitating towards 3280.

We are currently pricing a relatively flat open for our market this morning.

OCBC Investment Reseearch said:

Despite the STI pulling back another 0.3% yesterday, this morning’s optimism could potentially help reverse the index’s near term downside momentum and propel it towards the 3320 key resistance again for another test.

Meanwhile, the immediate support is still marked at the 3230 key resistance-turned-support, with the next support pegged at the 3200 psychological level.

Above the firm 3320 resistance, the subsequent resistance lies at the 3400 psychological hurdle.