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STI set for poorer open

Sentiments are forecast to even deteriorate.

OCBC Investment Research said:

The more than 1% pullback on Wall Street last Friday night and the weak Nikkei start (down 0.4% now) are likely to cue the local bourse to a poorer opening this morning.

As a recap, the STI managed just a 0.5% higher close in the last session despite recovering as much as 0.8% intraday.

And with sentiments likely to deteriorate today, we could see the index inching lower towards the 3020 support again. Below that, the next support lies at the 3000 psychological base.

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:

Today the futures market points to a weaker open for the STI this morning. Friday night saw Singapore Airlines reveal a 54% drop in net profits as the mixed bag of corporate earnings continues.

But this big fall only tells half the story. Singapore Airlines has been planning for a slowdown in its main long-haul service and shifting attention to its low-cost and budget shorter-haul carriers as passengers tighten their belts.

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