Daily Market Opinion for 30-Oct-2012

Daily Market Opinion for 30-Oct-2012

STI tumbles lower during the start of the week yesterday with expectations of weak corporate earnings. STI opened with a slight gap down which it managed to rebound during the early trading session. Lacking of direction from the Asian markets prompted the sellers to make use of the opportunity to sell on the high side causing STI to slide lower during the afternoon session. Weak European market opening caused STI to slide further and STI test the key support level of 3030 level. Eventually, STI closed at 3029 level with 27.9pts lower wiping out the previous week’s gains. DJI was closed due to Hurricane Sandy alert last night which might lead to more directionless action for STI today. With the absence of US market, can STI find its own direction today? Can STI hold at 3030 support level even though it had broken it …