Daily Markets Briefing: STI down 0.4%

Analyst predicts an intial 0.3% lift.

IG Markets Singapore said:

In Singapore, the STI continues yo-yoing above and below the 3300 mark. Yesterday it dropped 0.4% to hit 3288 but today may make another push for the 3300 line.

We are pricing for an initial lift of 0.3% which for the STI this morning, which would take us tantalisingly close to that 3300 mark once again. Local sentiment may be boosted by Singapore retaining its AAA rating from Fitch and the thoughts of the F1 IPO being back on the table.

Meanwhile, OCBC Investment Research noted:

With the STI pulling back more than 0.4% yesterday, it further reinforces the point that 3320 is a vital obstacle for now; the index will need to overcome this key level before we can see any significant recovery.

And with today’s tone unlikely to see any significant changes, we could see the index consolidating around current levels.

The immediate support is still marked at the 3230 key resistance-turned-support, with the next support pegged at the 3200 psychological level. Above the firm 3320 resistance, the subsequent resistance lies at the 3400 psychological hurdle.