Daily Markets Briefing: STI up 0.5%

Initial support pegged at the 3108 mark.

OCBC Investment Research:

Despite the higher close on Wall Street overnight, the Nikkei is off to a muted start (now down 0.3%); this suggests that there may be some investor fatigue over in Asia.

Likewise, the inability of the STI to convincingly clear the key 3200 hurdle could lead to some healthy profit-taking in the near term – note that after yesterday’s 0.5% rise, the STI has added nearly 5% since 20 Mar.

In any case, the market may be sidelined ahead of the release of China’s manufacturing numbers later this morning; there is also news of further tension between North and South Korea. 

On the downside, we peg the initial support around 3108 (mid of Bollinger Band), ahead of 3065 (recent lows).