Daily Markets Briefing: STI up 0.48%

Key resistance pegged at 3260.

Singapore Exchange:

The Straits Times Index (STI) ended 15.07 points higher or +0.48% to 3,169.91, taking the year-to-date performance to +0.09%. The FTSE ST Mid Cap Index gained +0.78% while the FTSE ST Small Cap Index declined +1.24%.

The top active stocks were Noble Group (+5.24%), UOB (-0.10%), SingTel (unchanged), DBS (unchanged) and Capitaland (+0.32%).

OCBC Investment Research said:

The strong rebound on Wall Street overnight should continue to keep local sentiment buoyant, although we can expect some profit-taking, especially after the STI posted gains over the last three sessions.

Some investors could also be keen to lighten their positions before heading off for a long weekend break, given that Tue is a public holiday.

We peg the key resistance at 3260, as a convincing break could trigger a reverse head and shoulders formation (with potential target of 3530).

Still, the STI needs to convincingly clear initial hurdle at 3179 (middle of Bollinger Band).

Initial support at 3125 (minor uptrend line since 28 Aug), ahead of the 3051-3071 gap.