STI sees lackluster performance

The index hardly moved, failing to make any significant headway after opening some 0.4% lower on Monday.

OCBC Investment Research said:

With the US market closed overnight, the local bourse is likely to take cue from the poor Nikkei start (down 0.4% now) and open in the negative territory this morning.

As a recap, the STI continued to see lackluster performance yesterday on low trading volume; the index opened some 0.4% lower and failed to make any significant headway thereafter. By the close, the index was still about 0.3% in the red.

For now, the index is still likely to swing between the 3000 psychological base and the 3040 support-turned-resistance.

Beyond these levels, the subsequent obstacle still lies at the 3090 resistance (recent peaks) with the next support level pegged at the 2980 troughs.

IG Markets Singapore meanwhile noted:

In Singapore, the STI was lacklustre yesterday as it hardly moved. The Friday rally it enjoyed ahead of Jackson Hole wasn’t undone yesterday, another signal that local traders believe QE3 is a case of when not if.

The futures market points to a flat open for the STI this morning.