Daily Markets Briefing: STI down 1.1%

Expect more losses today.

According to OCBC, the muted showing on Wall Street overnight is unlikely to give the battered local sentiment much of a boost this morning; the Nikkei has opened 0.1% lower.

Here's more from OCBC:

While the 1.1% sell-down in the STI yesterday was fiercer than expected, it reinforces our view that the medium-term outlook remains quite bearish.

Still, the market is hopeful of a “SG50” rally next week; but we could see investors taking opportunity of any technical rebound to sell into strength; this especially if the index fails to convincingly clear the key 3357 hurdle yet again.

On the downside, we peg the immediate support at 3200, ahead of 3167.