Daily Markets Briefing: STI down 0.2%

Expect muted gains today.

According to OCBC, despite the modest gains on Wall Street overnight, we do detect a pretty cautious tone, given the rather low volumes traded; we also note that the US index futures are easing in after-hours trading.

Here's more from OCBC:

While the STI, down 0.2% yesterday, ended off intraday low, it does look like it may be tough to clear the immediate 3049 hurdle (38.2% retracement of the fall from 3549 to 2740) for now.

And given the recent strong gains, we could see more profit-taking in the days ahead, especially if earnings start to disappoint – KepCorp is due to report this week and the banks next week.

Also worth noting is that interest has switched back to the penny plays, possibly driven by the second and third liners O&G stocks; but many are starting to exhibit toppish signals.