Daily Markets Briefing: STI likely to drop 1%

Analyst predicts index to consolidate and drift sideways.

IG Markets Singapore noted:

As such, the STI which ended just 0.2% higher in the last session could consolidate and drift sideways just below the key 3320 key resistance for today.

OCBC Investment Research said:

In Singapore the STI flirted with 3300 on Friday and once again failed to close above that mark, settling for the weekend at 3286 a gain of 0.6% for the session.

We are likely to see all those gains eradicated and potentially much more as broad equity sell off seems to be the order of the day in Asia. We are currently pricing a 1% fall for the STI at our open, in line with move seen in Asia and for US futures in initial trade, which means we will open around 3250.