Daily Market Opinion for 02-May-2013

STI inched higher on Tuesday as it prepared itself for Labour Day holiday on Wednesday. STI opened with a gap up action in reaction to positive action by DJI in its previous night. There were attempts to trade higher and it faces selling pressure at the high of 3383 level. The opening failed to sustain during the day and more sellers started to enter the market with concerns on the uncertainty over the Labour Day holiday. Prices started to creep back to its previous day’s closing and hit as low as 3365 level. STI ended up closing at 3368 level with 6.26pts higher for the day. Last night, over the holiday night, DJI closed with 138.85 after reports of weak data. Will STI be able to stay at this current level? Or will STI be affected by DJI’s weak closing and head south?

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