Daily Market Opinion for 06-Feb-2014

STI attempted to rebound yesterday but it turned out to be unfruitful. The day opened with a gap up action which helped STI to recover above 2970 level. Upside efforts were seen in the morning session which helped STI to reach as high as 2984 level. However, it failed to sustain the bullishness and started to slide down again. STI slide down gradually for the rest of the day as traders are still not convinced of the rebound action. Hence, ended its day lower with 5.71pts down; closing at 2960.09 level. Last night, DJI was trading flat with just 5.01pts down. Will STI be able to continue its rebound attempts? Or will STI continue it’s downwards movement?

It is heartening to see that STI is attempting to rebound yesterday as this is a sign that the bearish momentum is weakening. However, STI’s ...