Daily Markets Briefing: STI up 0.4%

Analyst predicts index to decline 0.6% at the open.

IG Markets Singapore:

The STI closed at 3269.1, a gain of 0.4% but after the struggles in European trade we are currently pricing for an open 0.6% lower today. So we are basically giving back all of yesterday’s gains at the start of today’s session.

OCBC Investment Research said:

While the STI ended 0.4% higher yesterday, it was well off the intraday high, suggesting it may just be a “dead cat bounce” following the previous session’s 0.9% tumble.

Meanwhile the overall volume has dwindled further, probably in part due to the Mar school holidays and also a sign that the market has turned slightly more cautious around current levels.

Not surprising as the STI has formed a “triple top” with peaks around 3319; it has also triggered a parabolic sell signal two sessions back.