Daily Markets Briefing: STI up 0.5%

Brace for a pullback today.

According to OCBC, the pullback on Wall Street Friday night amidst increased odds of a Jun Fed rate hike could spark a similar correction in the local bourse, especially after the STIs 0.5% gains in the previous session.

Here’s more from OCBC:

But as before, we believe that the STI will continue to trading around the key 2800 level for now, probably keeping within a tight 2770-2820 range in the near-term; we peg the next support and resistance at 2750 (100-DMA) and 2843, respectively.

Overall volume dwindled further last Friday, dropping 15% to just 1.3b units traded, and while average value/unit jumped 19% to S$0.61, the focus remains firmly on the penny plays; however, we note that some of the blue chips like banks are looking slightly more bearish in the near-term and could see some profit-taking emerging soon.