Daily Markets Briefing: STI down 0.5%

Today’s tone likely to remain downside biased.

OCBC Investment Research said:

The significant retreat by the US indices overnight could spook the local bourse to a negative opening this morning.

Meanwhile, the STI slipped for the second consecutive session yesterday with a 0.5% loss; this suggests that the downside momentum is indeed building up.

And with today’s tone likely to remain downside biased, we could see the index declining further towards the 3070 trough for a test next.

Beyond that, the next support lies at the 3030 resistance-turned-support. On the upside, the 3140 level (recent peak) is still the immediate resistance, as the subsequent hurdle lies at the 3190 key peak.