Daily Market Opinion for 31-May-2013

STI continued to slide further as Nikkei’s slide continue to signal selling pressure in the Asian market. STI opened with a slight gap down yesterday as it reacted negatively towards DJI’s previous night bearish closing. Sellers were eager to exit the market which put more downward pressure into the market during the day. When Nikkei closed with around 5% down during the lunch hours, buyers were fearful and avoided the market; causing STI to hit as low as 3303 level. Before market closing, bargain hunters were waiting at the low and started to buy into the market. Subtle short covering was also seen and this brought some rebound in the market before closing. Eventually, STI managed close above its 3330 support level with strength of positive European market opening. STI ended with 31.46pts down and close at 3336 level. Last night, DJI halted the ...