Daily Markets Briefing: STI up 0.1%

Today's tone likely to turn more downside biased.

OCBC Investment Research said:

The pull-back on Wall Street overnight and the poor Nikkei start (down 1.1% now) could cue the local bourse to a negative opening this morning.

Despite registering a 0.1% gain yesterday, the STI is still clearly locked in a flat trading range since early Jul.

And with today’s tone likely to turn more downside biased, we could see the index drifting lower towards the lower boundary of its trading range again at the 3200 psychological support.

The next base lies at the 3130 minor troughs. On the upside, we still see the 3280 recent peak as the immediate obstacle, with the subsequent hurdle pegged at the 3320 support-turned-resistance.