Daily Markets Briefing: STI down 0.2%

Will today's tone improve?

OCBC Investment Research said:

The lackluster performance by the US indices overnight is likely to keep the local bourse on the back-foot this morning.

Meanwhile, local investors were clearly feeling wary about the market; despite a 0.6% intraday rally yesterday, the STI sunk to a 0.2% loss by the close instead.

And with today’s tone unlikely to see any significant improvements, we could see the index drifting around current levels with the immediate obstacle marked at the 3000 psychological resistance.

Above that, the next obstacle lies at the 3030 support-turned-resistance. On the downside, the immediate base is still pegged at the 2940 key trough, followed by the 2900 psychological support.