STI hits 12-month high

The futures market hints at a weaker open however, says IG Markets Singapore.

OCBC Investment Research said:

The muted reactions on Wall Street overnight and the flat Nikkei start could dampen local sentiments slightly this morning.

As a recap, the STI reversed last week's correction with a strong rebound yesterday; following a flat opening, the index recovered to a 0.8% gain by the close on the back of fairly heavy trading value and volume.

But with today's tone likely to moderate, we could see the index consolidate around current levels before inching towards the 3100 immediate resistance (upper limit of gap resistance) again in the days ahead.

Beyond that, the subsequent obstacle lies at the 3140-3172 gap resistance. On the downside, the immediate support can be found at the 3040 resistance-turned-support, followed by the next base at the 2980 recent troughs.

IG Markets Singapore meanwhile noted:

In Singapore, Wilmar has showed that not all commodity stocks are created equally. After Noble saw a near 40% rise in profits which saw its share price rocket yesterday, Wilmar has announced a 70% slump.

Wilmar was hit hard by its edible oil exposure which faces political pressure from the Chinese government which wants to keep a lid on prices.

Asia Pacific Breweries/Thai Bev/Heineken/Kindest Place/Fraser & Neave is still bubbling away. ThaiBev will be strengthened by a stellar 64% rise in profits along with extending the deadline for F&N’s direct stake in APB.

The STI hit a 12-month high yesterday and the bulls will be hoping to push the 3100 level this session. The futures market hints at a weaker open, which may challenge any fresh high being reached today.