STI set for further recovery

The corporate earnings season is in full swing.

OCBC Investment Research said:

With the US market still closed overnight, the rebound by the European markets yesterday and the positive Nikkei start (up 0.7% now) could provide some inspiration to the local bourse this morning.

After a relatively strong rebound from its intraday low to close more than 0.3% higher in the last session, the STI is likely to see a further recovery in the direction of the immediate obstacle at the 3065 support-turned-resistance today.

Should this resistance be taken out, the subsequent resistance lies at the 3100 psychological obstacle.

On the downside, the immediate support is still pegged at the 3020 minor trough, with the subsequent base marked at the 3000 psychological support.

IG Markets Singapore meanwhile noted:

In Singapore, the corporate earnings season is in full swing and is so far proving a mixed bag. CapitaLand delighted shareholders yesterday with an 85% rise in net income while SingPost saw profits rise 7.3%. At the other end of the spectrum CDL Hospitality Trust, Tiger Airways and SIA Engineering have all posted downbeat results.

For the local stock market today, the futures market points to a slightly firmer open.