Daily Market Opinion for 16-Aug-2013

STI failed to sustain its gains yesterday as weak corporate reports impacted on the market sentiment. STI opened with a gap down in reaction to DJI’s previous night’s weak performance. Bargain hunters helped to support the market as they actively entered the market when 3220 level was being testing. However, this rebound was unsustainable as it hit the high of 3237 level after HSI opened with negative note. For the whole afternoon session, STI struggled to rebound and it even hit as low as 3212 level before short covering helped STI to recover back. Eventually, STI closed at 3220 level with 27pts down for the day. Last night, DJI closed with another day of red as it went down by 225.47pts. Will STI face further selling pressure today? Or will STI be holding at its support level?

STI’s failure to head higher yesterday implied ...