Daily Markets Briefing: STI up 0.2%

Today’s tone likely to remain more upside biased.

OCBC Investment Research said:

The optimistic display by the US indices last Friday night and the still-positive US index futures (up 0.2% now) could provide some inspiration to the local bourse this morning.

As a recap, the STI managed a 0.2% gain in the last session, although investors were still hesitant about pushing it beyond the 3200 psychological obstacle.

But with today’s tone likely to remain more upside biased, we could potentially see the index initiating another attempt to overcome this hurdle today.

Should the 3200 level be taken out, the index will likely head to the 3260 level (key peaks) next. On the downside, 3155 minor trough is still the immediate base, with the next support lying at the 3125 key trough.