Daily Markets Briefing: STI down 0.1%

Local sentiment is still fairly weak, says analyst.

OCBC Investment Research said:

The retreat by US stocks overnight and the weak Nikkei start (down 0.6% now) are likely to keep the local bourse on the back-foot this morning.

Despite recovering as much as 0.7% intraday yesterday, the STI still ended the day in the red (down 0.1%) subsequently; this suggests that local sentiment is still fairly weak at the moment.

And with today’s tone likely to turn more downside biased, the index could start slipping towards the 3070 key support again.

Should this key support be violated, we could see a quick retreat towards the next key support at the 3000 psychological level. Meanwhile, the immediate resistance is still pegged at the 3130 support-turned-resistance.