Daily Markets Briefing: STI up 0.89%

Expect modest gains today.

According to OCBC, with Wall Street posting further gains overnight, the local sentiment should remain fairly upbeat; but further strong gains are likely limited from here.

Here’s more from OCBC:

Although the STI managed to close above the key 2900 psychological level, the index has added over 7.3% since 28 Jun; daily RSI is also fast approaching the overbought region.

Furthermore, while overall volume surged 60% on 2.46b units traded, total value only inched up 18% to S$1.11b, as average value/unit slipped 26% to S$0.46; this led by strong interest in Noble and its rights.

As such, we could start to see some near-term consolidation around the key 2900 level before the index pushes higher again; we peg 2885 and 2920 as the initial boundaries.