Daily Markets Briefing: STI down 0.3%

Initial hurdle pegged at 3065 mark.

Singapore Exchange noted:

The Straits Times Index (STI) ended 9.09 points lower or -0.3% to 3,028.94, taking the year-to-date performance to -4.36%.

The FTSE ST Mid Cap Index gained +0.15%, while the FTSE ST Small Cap Index gained +0.03%. The top active stocks were SingTel (+0.29%), DBS (-1.06%), UOB (-1.83%), OCBC Bank (-0.80%) and Capitaland (+1.33%).

OCBC Investment Research said:

Continued weakness on Wall Street Friday could weigh further on local sentiment this morning; although downside may be limited by a more positive Nikkei showing (now +1.1%).

While we do not rule out a technical rebound after nearly 8% losing streak since 14 Aug, we believe that investors may still be looking to sell into strength, given the geopolitical tensions in the Middle East.

Note that the daily MACD is still mired deep inside the negative region, even though daily RSI and stochastics show market as oversold.

We peg the initial hurdle at 3065 (previous trough), ahead of 3090 (38.2% retracement of 3251-2990 fall, also parabolic buy signal trigger).

On the downside, we peg the initial support at 3000, ahead of 2983 (lower Bollinger band).