STI closes 0.3% lower

Significant improvements are said to be unlikely.

OCBC Investment Research said:

The muted reactions on Wall Street overnight and the poor Nikkei start (down 0.4% now) could continue to weigh on local sentiments this morning.

As a recap, the STI continued to display signs of weaknesses with a 0.3% lower close yesterday.

And with today’s tone unlikely to see any significant improvements, we could see the index drifting towards the 3020 base, ahead of the next support at the 3000 psychological level.

On the upside, the immediate obstacle is still pegged at the 3065 support-turned-resistance, with the subsequent obstacle pegged at the 3100 psychological resistance.

IG Markets Singapore meanwhile noted:

Singapore wakes up to more downbeat economic data, this time PMI manufacturing data which shows a fourth monthly decline in a row.

Factory output fell 0.4 points to 48.3 as the global slowdown takes another bite out of the local economy.

Today the futures market points to a firmer open for the STI this morning.

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