STI set for muted opening

Details of the Greek debt deal loom.

OCBC Investment Research said:

The mixed reactions on Wall Street overnight and the flat Nikkei start are likely to cue the local bourse to a muted opening this morning.

As a recap, the STI maintained its near term recovery yesterday with a 0.5% gain but fell short of overcoming its key near 2-month downtrend resistance.

And with today’s tone unlikely to see any significant improvements, we could see the index consolidating around current levels with the immediate hurdle pegged at the 3020 support-turned-resistance.

Beyond that, the next obstacle lies at the 3060 level (various peaks). On the downside, 3000 is now the immediate psychological base with the subsequent support pegged at the 2980 key resistance-turned-support.

IG Markets Singapore meanwhile noted:

In Singapore, property giant Straits Trading is reshuffling its portfolio which could see it offload its hotel assets to Far East Organization.

And OCBC could have its name in lights, quite literally, if it gets the go-ahead to brand the new Sports Hub. Corporations sponsoring sports stadiums is popular in the US and Europe and is now starting to catch on in Asia.

There isn’t a new sports stadium built every day in Singapore so this is a once-in-a-lifetime opportunity for OCBC to stand shoulder-to-shoulder with its international peers.

Today the futures market points to a marginally firmer open for the STI, however that could quickly change as the details of the Greek debt deal are likely to finally materialise.