Tone is forecast to remain more upside biased.
OCBC Investment Research said:
The rebound on Wall Street overnight and the positive Nikkei start (up 0.6% now) are likely to provide further inspiration to the local bourse this morning.
Despite the recent bearish technical signs displayed by the index, it still managed to buck the trend with a 0.5% rebound yesterday.
And with today’s tone likely to remain more upside biased, we could see the index recovering further in the direction of the 3230 immediate resistance (key peaks).
Beyond that, the next obstacle lies at the 3280 resistance (key peak in Jan ’11). On the downside, the immediate base is still pegged at the 3200 psychological support, with the next support at the 3150 key base.
IG Markets Singapore meanwhile noted:
In Singapore, the STI regained its poise yesterday gaining a healthy 0.5% to sit nicely above the 3200 level.
Another day, another meaningless Fraser & Neave deadline. It’s Thai tycoon Charoen’s turn today as his extended deadline expires today. With little action in the way of fresh bids, F&N shareholders are running out of patience.
The delay could be described as “unreasonable and not fair” on shareholders as OUE and TCC continue their phoney war for the soft drinks and property conglomerate.
Today the futures market once again points to a flat open for the STI.
More From Singapore Business Review