STI set for softer open

The STI could open softer looking at the futures market overnight, says IG Markets Singapore.

OCBC Investment Research said:

The retreat on Wall Street overnight and the poor Nikkei start (down 1% now) are likely to dampen local sentiments this morning.

Despite the strong intraday rebound yesterday from a whopping 1.6% loss at the open to a 0.1% gain by the close, the STI is still a tad away from conquering the vital 3040 key resistance.

And with today's tone likely to remain more pessimistic, we could see the index turning back south again and head towards the 2980 immediate base (minor troughs).

Below that, the next support lies at the 2930 level (another minor trough). On the upside, the subsequent obstacle is marked at the 3060 support-turned-resistance.

IG Markets Singapore meanwhile noted:

In Singapore today the STI could open softer looking at the futures market overnight.

With the extended deadline looming for Heineken’s bid for APB, we are expecting more jockeying for position among the interested parties. ThaiBev looks to have improved its position as it gradually builds up its stake in Fraser & Neave, which it now owns 24%.

But time is running for Japanese brewer Kirin which has so far failed to react to a prized Asian asset slipping from its control.