Daily Markets Briefing: STI up 0.2%

Index predicted to open on a pessimistic tone.

OCBC Investment Research said:

With the US indices turning in a weaker performance last Friday night and the Nikkei having a poor start (down 1.3% now), the local bourse could start the day on a more pessimistic tone.

Despite the 0.2% gain on Wednesday, the STI has already been inching lower gradually before the start of last week’s long weekend break.

With this downside biased momentum likely to persist, we could see the index sliding further towards the 3200 psychological support this morning.

Below the 3200 level, the subsequent base lies at the 3130 minor troughs. On the upside, the 3280 key peak is still the immediate obstacle to overcome, followed by the next hurdle at the 3320 support-turned-resistance.