Daily Markets Briefing: STI down 0.1%

Analyst predicts index to open stronger.

OCBC Investment Research said:

The rally by the US market to another new high last Friday night is likely to inspire the local bourse to a positive start this morning.

As such, the STI (which closed just 0.1% lower last Friday) is likely to open stronger today on heightened optimism.

However, any further gains after the positive opening could be limited as the index has already started to show signs of exhaustion over the past few sessions.

For now, the immediate resistance is still marked at the 3485 peak, followed by the 3500 psychological hurdle.

On the downside, we still see the immediate support at the 3425 recent trough, with the subsequent base pegged at the 3405 key resistance-turned-support.