Daily Markets Briefing: STI up 0.1%

Index to open at 3322, says analyst.

IG Markets Singapore noted:

In Singapore, caution was also the watchword yesterday. Despite manufacturing activity moving back into positive territory for March the STI could only manage to lift 0.1%. The local blue chip index starts the day at 3322.

With ISM manufacturing output showing a read of 50.6 for March, compared to 49.4 the previous month, this wasn’t cause for celebration. We expect Asian markets to trade lower today with consolidation at lower levels.

OCBC Investment Research noted:

The relatively sharp pullback by both the US and European markets overnight are likely to dent local sentiments this morning.

Despite closing just above the 3320 key resistance with a 0.1% gain yesterday, the bullish break was not convincing.

And with today’s tone likely to deteriorate, we could see the index falling back below this key level again and head for the 3300 minor trough. Below that, the next support is pegged at the 3280 minor resistance-turned-support.

On the upside, the immediate resistance is now marked at the 3400 psychological hurdle, with the subsequent obstacle at the 3480 historical peak.