Daily Markets Briefing: STI up 0.5%

Today’s tone likely to deteriorate, says analyst.

OCBC Investment Research said:

The retreat on Wall Street last Friday night and the worsening US index futures (down more than 0.5% now) could spook the local bourse to a poor start this morning.

Following five prior sessions of persistent correction, the STI finally initiated a 0.5% rebound in the last session.

But with today’s tone is likely to deteriorate again, we could see the index drifting lower towards the 3180 immediate support again.

Below the 3180 level, the next base lies at the 3130 resistance-turned-support. On the upside, 3270 (key peaks) is now the key obstacle to overcome, with the next hurdle pegged at the 3330 support-turned-resistance.