Trading is forecast to be in a more consolidative mode.
OCBC Investment Research said:
The muted reactions on Wall Street overnight and the weak Nikkei start (down 0.2% now) are likely to keep the local bourse in a more consolidative mode this morning.
As a recap, the STI opened strongly with a 0.8% gain yesterday but gave most of it up to end just 0.2% higher.
Nevertheless, the 3110 previous key obstacle has been conquered and is now the newly established immediate resistance-turned-support. Below that, the next base lies at the 3080 minor resistance-turned-support.
On the upside, 3140 (gap resistance) is now the immediate obstacle, with the subsequent hurdle pegged at the 3180 support-turned-resistance.
IG Markets Singapore meanwhile noted:
In Singapore today, Thai tycoon Charoen sees his deadline expire for his $8.88 offer for Fraser & Neave. Thailand’s richest have been the source of many M&A deals across the region this year and Charoen won’t want to see his name drop off that list.
The futures market points to a positive start to the day in Singapore, with the STI set to open marginally higher this morning.
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