Daily Markets Briefing: STI down 1%

Immediate base pegged at the 3070 mark.

OCBC Investment Research said:

The mixed reactions on Wall Street overnight are unlikely to have any significant impact on the local bourse this morning.

Following yesterday’s rather sharp 1% drop by the STI, local sentiments seems to have taken a turn for the worse.

The seemingly bearish reversal at the 6-month key downtrend resistance in the last session could potentially invite further selling pressure going forward.

For now, we are pegging the immediate base at the 3070 trough, followed by the next support at 3030. On the upside, the 3140 level (recent peak) is still the immediate resistance, as the subsequent hurdle lies at the 3190 key peak