Daily Markets Briefing: STI up 1.7%

Expect some profit-taking today.

According to OCBC, the STI’s rally of 1.7% yesterday was stronger-than-expected, especially in light of the 7.9% fall in NODX in Apr; and with Wall Street turning lower overnight, we could see profit-taking emerging once again.

Here's more from OCBC:

Failure to clear the next key hurdle at 2800 is widely expected to bring back the bears; in any case, the market will also need to be convinced that the 100-DMA resistance-turned-support (currently around 2758) before we see more bargain hunters coming back.

Otherwise, we could see more short interest coming back into the market, and send the index back towards 2700.

Overall volume dipped 29%, but remained at an active 2.7b units traded, while average value/unit almost doubled to S$0.46; likely driven by the rebound in some of the battered blue chips.