Daily Market Opinion for 20-Jan-2015

It is the start of the 3rd week of January and there is still no sign of the well known Capricorn effect. This week indecisively as the market was plagued with another bearish news. China Government clamped down on margin trading had caused a sharp drop in China market. China related shares were being affected due to this. Hence, STI was not spared. STI had a strong positive opening yesterday due to the positive closing by DJI last week. As it attempted to trade higher and tested a high of 3324 level, China’s new spread like a fire; bringing concerns to market participants. Selling pressure then sets in strongly and pushed STI to as low as 3297 level. At noon time, the market started to stabilise again and buyers entered the market to support. Hence, STI was able to close its day positively with …