STI up 0.5%

The index hit a two-year high.

OCBC Investment Research said:

The mixed reactions on Wall Street overnight are unlikely to provide much inspiration to the local bourse this morning.

Despite so, the STI finally overcame the 3230 resistance with a 0.5% gain yesterday. This optimistic breakthrough, could give local investors a reason to push the index higher today.

For now, we have shifted the next resistance to the 3280 (key peak), with the subsequent obstacle pegged at the 3300 psychological resistance.

On the downside, 3230 is now the newly established resistance-turned-support, ahead of the next base at the 3200 psychological support.

IG Markets Singapore meanwhile noted:

In Singapore the STI lifted 0.5% to hit a two-year high, trading at 3248 as optimism grows of another solid year of gains for the island’s blue chip stocks and Reits.

On the commodities front, energy markets greeted the improving factory output data with a lukewarm reception. US crude was little changed at US$96.46 a barrel while Brent moved up 0.4% to $113.48.

But it was sadly a different story for gold as it lost 1%. Improving economic data means less likelihood of central bank largesse, a gravy train the precious metal is still hoping to ride.

As a result the precious metal sits back down at $16669 an ounce this morning having lost a little sparkle.

Today, the futures market points to flat start for the STI this morning.