STI climbs for 4th consecutive session

The index registered a 0.5% gain but is forecast to be uninspired on Thursday.

OCBC Investment Research said:

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

As a recap, the STI climbed for the fourth consecutive session yesterday after registering a 0.5% gain at the close.

And with today's tone likely to moderate slightly, we could see the index consolidating around current levels with the immediate resistance now marked at the 2900 key support-turned-resistance.

Beyond that, the next key obstacle lies at the 2945 minor support-turned-resistance. On the downside, the immediate base is now pegged at the 2814-2821 gap support, with the subsequent support marked at the 2800 psychological base.

IG Markets Singapore meanwhile noted:

The focus for today’s Asian session will move back to China, often forgotten at the moment with the main focus being on Europe, as HSBC flash manufacturing PMI is out with the previous reading at 48.4.

Continued questions of a hard or soft landing for the world’s second largest economy are still being debated as a sideshow to what is going in on Europe.

So far it would seem softer rather than hard in terms of a landing, but with Europe being such an important trading partner, the continued woes there add pressure to the government to get the right balance of stimulus and infrastructure projects to keep the Chinese economy on track.

Singapore shares are looking to open shortly (ahead of the Chinese PMI data), around 0.5% firmer this morning.