STI rebounds; Formula One to start pre-marketing for upcoming IPO

The index recovered to a 0.4% gain by the close of 21 May 2012 trading.

OCBC Investment Research said:

The strong rebound on Wall Street overnight and the positive Nikkei start (+1.2% now) are likely to provide further inspiration to the local bourse this morning.

As a recap, the STI rebounded off its 3-year uptrend support yesterday; despite a 0.1% lower opening, the index recovered to a 0.4% gain by the close.

With today's tone likely to remain optimistic, we could see the index recovering further and fill the 2795-2822 gap resistance.

Beyond that, the subsequent resistance is still pegged at the 2900 key support-turned-resistance. On the downside, the immediate support can be found at 2763 (Friday's intraday low), with the next support at 2740 (minor resistance-turned-support).

IG Markets Singapore meanwhile noted:

Last night we saw risk assets perform well across the board. On the commodities front, Brent crude rallied 2% last night to $109.22 but gold is still finding resistance at $1600 an ounce.

The local economy could be buoyed today by two pieces of good news. Motor racing giant Formula One will today start pre-marketing for its upcoming IPO on SGX which could see it valued at $10 billion.

Another shot in the arm for Singapore comes from mining giant Anglo American which will be opening a new commercial hub here in July as it shifts its sales focus towards Asia.

After modest gains for the STI yesterday, the futures markets are hinting at a firmer open this morning with less pessimism in the air.