Daily Markets Briefing: STI down 1%

Index likely to stabilize today, says analyst.

OCBC Investment Research:

The rebound on Wall Street overnight and the positive Nikkei start (up 0.4% now) could help lift local sentiments slightly this morning.

Despite slipping as much as 1.4% intraday yesterday, the STI managed to climb back above the 3000 key psychological support subsequently and end the day with a smaller 1% loss.

And with the index likely to adopt a more stabilizing stance today, we could see it consolidating around current levels with a slight upside bias.

Below the 3000 level, we see the next base at the 2930 key trough. On the upside, 3070 is still the immediate support-turned-resistance, followed by the next obstacle at the 3130 resistance.