Daily Markets Briefing: STI up 0.5%

Expect modest gains today.

According to OCBC, while continued gains on Wall Street overnight should keep local sentiment fairly upbeat, the STI may be due for a healthy technical correction soon, especially after the string of gains over the past five sessions.

Here’s more from OCBC:

Recent price action also points towards a potential reversal, although daily MACD is still looking pretty positive.

As before, we could start to see some healthy profit-taking should the index fails to clear the immediate 2885 hurdle, or fails to sustain itself above the immediate 2843 support.

Overall volume was flat with 2.09b units done, although total value improved 10% to S$1.09b, average value/unit remained relatively flat at S$0.52; not surprising as penny plays continued to hog the lime-light, especially those previously-battered second-liners O&G plays.