Firmer open set for STI

The recovery on Wall Street and the positive Nikkei start could continue to keep local sentiment buoyant, says OCBC Investment Research.

OCBC Investment Research said:

The recovery on Wall Street and the firmer Nikkei start (now +0.4%) could continue to keep local sentiment buoyant.

However, sharp gains are unlikely, given that the STI has put in a very strong showing since end Jun; it was again up 0.5% yesterday despite a weak start.

We peg the immediate resistance at 3033 (2012 high), ahead of 3050; but failure to convince clear 3033 could encourage near-term profit-taking.

Initial support at 3000, ahead of 2950.

IG Markets Singapore meanwhile noted:

The futures market points to a firmer open for the STI this morning, having ended above 3000 last night as hopes of Fed easing and strong export numbers lifted risk-on trading.

The local corporate earnings season is also showing local companies’ resilience with A-Reit among those delighting traders.

Meanwhile, Singapore-based Thai Beverage has emerged as the mystery bidder for OCBC’s stake in soft drinks maker F&N.