Daily Markets Briefing: STI up 0.35%

Expect a modest boost today.

The Straits Times Index (STI) ended 10.96 points or 0.35% higher to 3107.65, taking the year-to-date performance to +7.80%.

The top active stocks today were DBS, which gained 0.32%, Singtel, which gained 0.50%, OCBC Bank, which gained 0.74%, UOB, which gained 1.73% and Wilmar Intl, with a 0.77% advance.

According to OCBC, this came as all three major stock indexes closed at records on Friday with the Dow Jones Industrial Average eking out gains to extend its record-setting streak to a seventh session.

Meanwhile, eight out of eleven S&P 500 industries ended higher, led by Telecommunication Services (0.90%) while Energy (-0.53%) led the losses. The index rallied 1.51% for the week.

"The gains on Wall Street Friday could provide a modest boost to the local bourse today," OCBC noted.

Here's more OCBC:

While the STI managed to take out its 3100 immediate resistance last Friday, the ability of the index to sustain itself convincingly above this level remains crucial.

We peg the initial resistance at 3125, ahead of 3165; on the downside, we peg the initial support at 3100 resistance-turned-support level, followed by 3040.

Overall volume rose 13.8% with 3.8b units traded, and total value climbed 6.5% to S$1.4b, while average value/unit fell 6.4% to S$0.37.