STI may be testing 2900 tomorrow!

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On 11/Mar, it has been announced that China's consumer price index rose a faster-than-expected 2.7% in February from the year earlier period, quickening from January's 1.5% rise. The rise in CPI and a robust 20.7% jump in January-February industrial output fueled concerns of further credit tightening which may come as early as April.

STI ended up 11.62 points, or 0.4%, at 2,873.91, with 1.47 billion shares traded. Gainers just outnumbered losers with 238 counters rising and 231 counters falling. Overall STI has been choppy and kept swinging between positive and negative territory amid caution on further tightening measures in China following the release of higher-than-expected inflation data. In fact it is not an encouraging sign since the no of counters rising/falling is almost equal although the index gain 0.4%

Lastly Sembcorp Marine moved higher on an announcement at 1pm that it has landed an S$130 million contract from Brazil oil giant Petrobras to carry out pre-conversion work on a very large crude carrier. The stock was the biggest gainer on the Straits Times Index and ended up 3.5% at S$4.11. Further upside will be expected tomorrow due to the good news may not reach everyone yet.

Immediate resistance of Sembcorp: $4.17

Immediate support of Sembcrop: $3.88



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