Daily Markets Briefing: STI up 0.5%

Expect another good session today.

According to OCBC, the strong rally on Wall Street could continue to keep local sentiments upbeat; but profit-taking could emerge at higher levels ahead of the weekend.

Here's more from OCBC:

The STI, which rebounded 0.5% yesterday, could inch higher to fill the minor gap at 3279-3285; however, it may remain a challenge to clear the 3300 psychological hurdle.

For one, the daily technical indicators are still looking somewhat bearish; the stochastic indicator is still falling towards the 20% region, while the MACD has just fallen below the centre line.

On the downside, we peg the initial support around 3200 (lower uptrend channel support since early Feb 2014).

Separately, the persistent weakness in crude prices could continue to weigh on O&G names, sparking potential profit-taking on the recent rebounds.