STI slips to 1.1% loss

The index is forecast to inch lower towards the 2930 key trough.

OCBC Investment Research said:

The continued retreat on Wall Street overnight is likely to dent local sentiments further this morning.

As a recap, the STI saw a rather sharp sell-off yesterday; following a 0.5% lower opening, the index slipped further to a 1.1% loss by the close.

And with today’s tone likely to remain more downside biased, we could see the index inching lower towards the 2930 key trough.

Below that, the subsequent base lies at the 2900 psychological support. On the upside, 2980 is the immediate support-turned-resistance, with the next obstacle marked at the 3020 support-turned-resistance.

IG Markets Singapore meanwhile noted:

In Singapore, it has been a mixed bag of economic data in the last 24 hours. On the plus side, exports rose in October by 7.9%, after registering a 3.6% fall in September. While retail sales have picked up, rising 3.9% year-on-year.

However, exports for Q3 as a whole fell 3.2% as companies struggled with lower demand from the eurozone. The Ministry of Trade and Industry said this morning it expects Singapore GDP to come in at 1.5% this year, and is predicting growth of between 1% and 3% for 2013.

The futures market is pointing to a weaker open for the STI this morning. Having dropped more than 2% in the last two days, the good year for the local market is in danger of turning into an average one.