STI set for positive open
Gains, however, are forecast to be limited amidst signs of the index’s weakness.
OCBC Investment Research said:
Despite the muted reactions on Wall Street overnight, the positive Nikkei start (up 0.9%) now could cue the local bourse to a positive opening this morning.
However, any gains will be limited as the STI continues to show signs of weakness yesterday; the index closed flat despite opening some 0.5% higher.
For now, we peg the immediate resistance at the 3067 level (yesterday’s intraday high), with the subsequent hurdle marked at the 3100 psychological obstacle.
On the downside, we still see the initial support at 3022 (recent trough), ahead of the 3000 psychological support.
IG Markets Singapore meanwhile noted:
The major focus today will be the swathe of Chinese data out at 10am (SGT) with GDP, Industrial production and Retail Sales being the main data releases that investors’ will be on the watch for.
GDP is the obvious headline grabber and with a wide range of expectations from below 7% to above 9% being estimated by some economists, the consensus is 7.4%.
The world and investors are desperate for a sign that the Chinese economy has started to find a bottom an above expectation print could be taken as an early sign of this.
Ahead of that data we are calling Singapore to open on a positive note with the STI set for around 0.5% rise when it opens.