Daily Markets Briefing: STI down 0.21%

Brace for a pullback today.

According to OCBC, although Wall Street rebounded from early losses to end with modest gains overnight, the sharp retreat in Europe could impart further caution to the local bourse today.

Here’s more from OCBC:

After the mid-week break yesterday, investors are also likely to adopt a wait-and-see attitude, ahead of the US non-farm payroll data due Friday night; but many believe the likelihood of a US rate hike this year is dim.

Interestingly, while overall market volume jumped 28% with 2.41b units traded, total value only edged up 3% to S$1.0b; this as average value/unit slipped further to just S$0.41, down 19%, with penny stocks firmly back in the spotlight.

As before, we peg the initial support at 2850, ahead of the key 2800 psychological level; on the upside, we see the initial hurdle at 2885, ahead of the 2900 psychological barrier.