Daily Markets Briefing: STI up 0.5%

Today’s tone likely to turn more downside biased.

OCBC Investment Research said:

The pull-back on Wall Street last Friday night could spook the local bourse to a negative start morning.

Despite rallying as much as 1.1% in the last session, the STI lost its steam subsequently to end the day with just a 0.5% gain; this suggests that investors are still fairly cautious about the market outlook.

And with today’s tone likely to turn a tad more downside biased, we could see the index drifting lower towards the 3050 recent trough.

Below that, the next base lies at the 3030 resistance-turned-support. On the upside, 3100 recent peak is the immediate resistance, with the next hurdle lying at the 3140 key peak.