Daily Markets Briefing: STI up 0.9%

Expect some profit-taking today.

The Straits Times Index (STI) ended 25.62 points or 0.90% higher to 2856.68 on Monday, taking the year-to-date performance to -0.90%.

According to OCBC, this came as US Stocks pulled back from sessions high but closed its Monday with gains. It has gained a lift from a heavy round of merger announcements, including AT&T’s planned acquisition of Time Warner.

Eight of the S&P 500 industries ended higher, led by Information Technology. On the other hand, telecommunication Services led the losses.

“The gains on Wall Street overnight could provide some support to the local bourse today, potentially extending the 0.90% gains in the previous session,” OCBC said

Here’s more from the brokerage firm:

Gold for Dec delivery shed US$4.00, or 0.32%, to close at US$1263.70/ounce while Dec Silver added 11 cents, or 0.63%, to settle at US$17.60/ounce.

On the upside, we peg the initial hurdle at 2865, ahead of its next resistance level at 2900; on the downside, we peg the immediate support around 2800, ahead of 2725.

Overall volume jumped 64.9% with 2.6b units traded, and the total value rose 13.0% to S$0.8b; while average value/unit dipped 31.4% to S$0.32.