Daily Markets Briefing: STI down 0.3%

Analyst predicts index to open down.

OCBC Investment Research noted:

The sharp retreat on Wall Street overnight is likely to spook local sentiment this morning.

With the STI pulling back another 0.3% yesterday, this suggests that the near-term downward momentum remains intact.

As such, the index is likely to head straight and possibly test the 3,240 key resistance-turned-support. Below that, the subsequent base is pegged at the 3,200 psychological level.

Meanwhile, the immediate key resistance is still pegged at the 3,330 key peak, while the subsequent resistance lies at the 3,400 psychological hurdle.

Meanwhile, IG Markets Singapore said:

With heavy selling pressure overnight, we expect the STI to open down.