STI continues trading in 'muted session'

The index is forecast to just hold up above the 3040 resistance-turned-support.

OCBC Investment Research said:

With US stocks turning in another mixed session overnight and the Nikkei 225 index starting just mildly higher (up 0.1% now), these are unlikely to provide much inspiration to the local bourse this morning.

As a recap, the STI continued to trade in a muted session yesterday on thin trading volume; after opening some 0.1% lower, the index slowly drifted to a 0.2% lower close.

And with today's tone unlikely to show much improvement, we could see the index just holding up above the 3040 resistance-turned-support.

Below that, the next base lies at the 2980 troughs. On the upside, the immediate hurdle is still pegged at the 3090 resistance (recent peaks), while the subsequent obstacle is marked at the 3140-3172 gap resistance.

IG Markets Singapore meanwhile noted:

In Singapore, the battle for APB takes another twist as ThaiBev reveals it has upped its stake in APB joint owner Fraser & Neave to 29%. This is just shy of the 30% mark which would trigger a formal bid for F&N.

Heineken must be worried what ThaiBev will do now to take control of F&N and derail its bid to take over its crown jewel APB. But the Dutch brewing giant is unlikely to raise its $53 a share offer any higher.

The futures market is hinting at a slightly firmer opening for the STI this morning after its flat finish last night.