STI set for firmer open

The index is forecast to inch higher in the direction of the 3088 key peaks again.

OCBC Investment Research said:

The mild gains on Wall Street overnight and the positive Nikkei start (up 0.3% now) could cue the local bourse to a more optimistic opening this morning.

As a recap, the STI was little changed at the close yesterday despite facing some earlier selling pressure; although the index lost as much as 0.4% at one stage, it rebounded subsequently to end just 0.1% lower.

And with today's tone likely to see an improvement, we could see the STI inching higher in the direction of the 3088 key peaks again.

Beyond that, the next hurdle is still pegged at the 3100 psychological resistance. On the downside, the immediate base still lies at the 3040 resistance-turned-support, followed by the subsequent support at the 3000 psychological level.

IG Markets Singapore meanwhile noted:

In Singapore today the SGX has announced plans to offer dual-class shares to listing companies. This comes too late for Manchester United that wanted such a facility and ultimately switched to a US listing.

But going forward, the ability to issue non-voting and multiple voting right shares should appeal to international companies wanting to list in Singapore.

The STI looks set for a firmer opening this morning based on the futures market.