Daily Markets Briefing: STI down 0.2%

Expect modest gains today.

According to OCBC, the modest rebound on Wall Street overnight should provide a boost to the local bourse this morning, possibly extending the STI’s late rebound yesterday.

While the STI still ended 0.2% lower, it managed to not only regain the key 2900 support but also close just a shade below the next key 2919 resistance (38.2% of the fall from 3549 to 2528).

Here’s more from OCBC:

And as long as the index can overcome this immediate hurdle, it should extend its recovery to test the next key obstacle at 2950; although the daily technical indicators suggest that it may lack the momentum to convincingly clear it yet.

We also note that the overall market volume was flat as compare to the previous session, while average value/unit was also unchanged at S$0.68; but losers outpaced gainers 1.6 to 1.