Big gains on Wall Street following positive US manufacturing data should pave way for strong opening for Singapore shares, enabling STI to head above 3,000 for first time in more than 3 weeks, says Dow Jones.
Resistance for benchmark, which closed +1.1% at 2,982.83 yesterday, expected at year-to-date high of 3,043. High-beta plays like NOL (N03.SG), Genting Singapore (G13.SG), Golden Agri-Resources (E5H.SG) may be key percentage gainers among STI components.
Whether expected uptick able to last in days ahead or just mere blip will hinge largely on Friday’s US August non-arm payrolls report. “Whilst it remains to be seen if the US economic slowdown could lead to shocks that affect equity markets, we believe the risk has risen over the past few weeks,” says DMG; “in our view, there is greater uncertainty in the market now and over the next three to six months.”