Daily Markets Briefing: STI up 0.2%

Analyst predicts index to climb towards the 3,315 minor peak.

OCBC Investment Research noted:

The relatively strong rebound by the US indices overnight is likely to boost local sentiment this morning.

Despite gapping down more than 0.4% at the open yesterday, the STI rebounded to a 0.2% gain by the close; this suggests that the local market is still fairly resilient.

And with today’s tone likely to see further improvements, we could see the index climbing gradually towards the 3,315 recent minor peak.

Beyond that, the next resistance lies at the 3,330 key peak. On the downside, 3,265 (minor trough formed yesterday) is the new near-term support, with the subsequent base pegged at the 3,240 key resistance-turned-support.

Meanwhile, IG Markets Singapore said:

The STI once again showed it’s made of stern stuff as it also recovered from a low open to edge higher, closing 0.2% firmer at 3291.6.

While the 33-handle remains tantalisingly close for our local benchmark, managing to break through it has proved a tough hurdle to pass. Given the overnight leads today might be ideal opportunity for another attempt to finally get over this mark.