Daily Markets Briefing: STI up 0.1%

Index likely to drift higher and test the 3320 hurdle.

OCBC Investment Research noted:

The STI inched higher with a 0.1% gain in the last session; although the index seems a bit lethargic over the past few sessions, there is still a good possibility of it drifting higher and test the 3320 key obstacle in the days ahead.

Should the index overcome the 3320 obstacle convincingly, it will then continue on towards the subsequent 3400 psychological hurdle.

On the downside, the 3230 key resistance-turned-support is the immediate base, with the next support level pegged at the 3200 psychological level.

Meanwhile, IG Markets Singapore said:

In Singapore the STI couldn’t fully take on board the wave of optimism coming out of Wall Street. The local index could only manage to nudge up 0.1% to leave it sitting tantalisingly close to the 3300 mark, at 3293.

Last year’s best performer, the property sector, is truly weighing heavy on our index as US and European. Government curbs around the region are reigning in investor confidence in the sector, for the short term at least.

This morning we are pricing for a 0.1% lift at the open for Singapore’s blue chip index.