Daily Markets Briefing: STI down 0.6%

Expect more losses today.

According to OCBC, the continued weakness of Wall Street overnight due to caution ahead of the US FOMC meeting (16-17 Sep) is likely to keep local investors on the sidelines as well; the STI ended 0.6% lower yesterday, pretty much ignoring the strong mandate for the PAP after last Friday’s poll.

Here's more from OCBC:

And as the local sentiment continues to remain quite muted, it would be tough for the STI to clear the key 2900 hurdle in the near term.

Instead, we could see the index making a slow grind down to 2800 region, breaking which, the next key support would be found only around 2600.

While we peg the next hurdle at 2950, 3000 remains the main hurdle to clear.