STI up 0.5%

The index has hit a 16-month high this week.

OCBC Investment Research said:

The retreat on Wall Street overnight and the weak Nikkei start (down 0.2% now) are likely to cue the local bourse to a negative opening this morning.

As a recap, the STI maintained its climb yesterday, ending 0.5% higher.

But with today’s tone likely to turn more downside biased, we could see the index pulling back towards the 3140 immediate resistance-turned-support.

Below that, the next base lies at the 3110 key resistance-turned-support. On the upside, the immediate hurdle is still pegged at the 3180 support-turned-resistance, followed by the 3200 psychological obstacle.

IG Markets Singapore meanwhile noted:

We are now moving towards the real Christmas slowdown and traders are starting to crunch the numbers to see how their portfolios have done this year while doing some house-keeping at the same time. Markets are expected to tread water for the rest of the month, but with the added excitement of a brief wave of euphoria if Congress can agree on budget talks by the year end.

SC Global could be in focus in early trade after Wheelock Properties confirmed last night that they have extended their holding by buying stock in the open market at $1.81. This is just above the level offered by CEO Simon Cheong.

There have been mixed messages to investors. Some brokers have recommended accepting the tabled bid, while some parties - including Wheelock - have now stated publicly that the offer seriously undervalues the company by as much as 50% from the revalued net asset value (RNAV). This has a familiar ring to it, as a savvy investor looks to take advantage of a mispriced property portfolio and bag themselves a bargain.

While the STI has hit a 16-month high this week and continues to push higher, the overall sentiment is one of fatigue and looking ahead to 2013. But for today, traders could see the STI flat and quiet open based on the futures market.