Daily Markets Briefing: STI up 0.37%

Expect modest gains today.

According to OCBC, the rebound on Wall Street overnight should provide more cheer to the local bourse this morning and keep the STI’s rebound going, potentially heading for a test of the key 2850 hurdle once again.

The price action yesterday, where the STI reversed early losses to end 0.4% higher, suggests that a near-term bottom may have been reached; in addition, it is the second straight session where the STI has managed to close above the key 2800 support.

Here’s more from OCBC:

As such, we should see slightly more confident buying interest emerging, as well as the closing of short positions; however, we may see profit-taking emerging again if the index fails to convincingly clear the 2850 barrier.

While market volume slipped around 11% yesterday, average value/unit remained relatively stable at S$0.68; we expect banks, major O&G names to come back into play today.