Daily Market Opinion for 08-Oct-2013

It was a weak start for the week as STI suffers continuous selling sentiment yesterday. The bullish opening yesterday failed to sustain yesterday after opening hours of the HSI market. As regional market went into red, STI also starts to follow yesterday. The drop was gradual yesterday while all the eyes were focus on the 3 designated stocks that were marked by SGX. Blumont, Asiasons and GoldLion were plunging more than 70% after suspension was lifted. This also triggered cluster of selloff in the rest of penny stocks. However, this did not affect the index badly. STI closed flat with only 1.49pts down, ending at 3136 level. Can STI continue to sustain at current level to stage a rebound?

STI had managed to stay supported at the gap support level of 3136 – 3147 levels. This shows that the selling pressure had indeed lessened ...