Daily Markets Briefing: STI up 0.9%

Expect more gains today.

According to OCBC, rebound on Wall Street last Friday could continue to keep local sentiment positive, although further sharp gains are unlikely after the STI’s 0.9% rebound Friday.

Here's more from OCBC:

Still, as long as the index can sustain itself above the key 100-DMA (currently around 2754), the index could continue to advance towards the next key 2800 hurdle.

But as before, persistent failure to clear this level could spark profit-taking and even some short interest, given that the overall corporate fundamentals are still relatively muted in the near to medium term.

We further note that the overall volume has fallen 33% to 1.7b units traded, while the average value/unit eased 13% to 0.55, suggesting that the penny stocks are back in play.