STI MARKET REVIEW

Singapore benchmark Straits Times Index (STI) opened at 2,800.54 points, up 9.65 points or 0.35 per cent, after US stocks gained the previous night and ahead of the release of China's official purchasing managers' index (PMI) data, a manufacturing gauge and ended 11.51 points or 0.41% higher to 2772.36. STI came off from its intra-day peak of 2799.80 and low of 2772.36 Top LosersScrip NameCMP%changeNOBLE0.41-1.2KEPPEL CORP6.72-0.88SEMBCORP

MARINE2.27-0.87UOL5.96-0.83JARDINE C&C26.82-0.74Singapore stocks posted gains midday on better-than-expected economic data out of China. China's official Purchasing Managers' Index climbed to 49.8 in September, compared with a median estimate of 49.7 in a Bloomberg poll, as well as an August reading of
49.7.

LOCAL BOURSE
Singapore home prices dropped for an eighth quarter, matching the longest losing streak in 13 years, as tighter mortgage curbs cooled demand in Asia's second-most expensive housing market. An index tracking private residential prices fell 1.3% in the three months ended Sept. 30 from the previous quarter. The slump was the most since June 2009, in the aftermath of the global financial crisis.

Market forecast:
STI is expected to be positive tomorrow as China's official Purchasing Managers' Index has come better than expected. STI has the support level of 2778. STI has its resistance at 2828. If it breaks this level it might go up to 2860. Investor sentiments are still cautious over the early rate hike of U.S. by FED.