Daily Market Opinion for 13-July-2013

Yesterday, STI was seen trading flat despite its attempt to start the week bullishly. The day started with a bullish motion with attempted to break 3260 level but it started to flutter off thereafter. The main reason why that happens is because of Moody’s downgrade on the ratings of Singapore banks to “negative”. This impacted the gains made by banks during the opening session. However, positive economic figures from China helped STI to sustain its bullishness by cushioning the concerns from the Moody’s rating. Hence, these 2 news had neutralised each other and cause STI to close flat with only 0.76pts up at 3236.82 level. The trading volume continues to be lacklustre. Last night, DJI closed as another flat day with merely 19.96pts higher. Will STI also continue to trade flat today? Or will Moody’s rating draw more concerns towards local banks’ ...