STI closes 0.2% lower

The index is forecast to attempt another test at the 3040 immediate resistance, says OCBC Investment Research.

OCBC Investment Research said:

The strong recovery on Wall Street last Friday night and the positive Nikkei start (up 1.1% now) are likely provide inspiration to the local bourse this morning.

As a recap, the STI bucked the trend with a 0.2% lower close in the last session despite having a very optimistic start (opened nearly 0.8% higher).

But with today's tone likely to improve significantly, we could see the index attempting another test at the 3040 immediate resistance (key peak) again.

Beyond that, the subsequent obstacle lies at the 3060 support-turned-resistance. On the downside, 2975 (minor trough) is still the immediate support, followed by the next base at the 2930 minor trough.

IG Markets Singapore meanwhile noted:

This week might be the latest crunch time for the eurozone crisis, but there seem to have been many of these in the last two years. So far this morning we are seeing markets around 1% higher and it looks likely Singapore will open in line with that.

The early part of this week we are likely to see nervous positioning as the market waits to see if the central bankers can finally deliver a meaningful blow to this credit saga.