Daily Markets Briefing: STI down 0.46%

Expect muted gains today.

According to OCBC, although the STI made a surprising recovery yesterday, where it reversed early losses to close 0.5% higher, the mixed closing on Wall Street overnight as well as the usual caution ahead of the weekend could limit further gains today.

Here’s more from OCBC:

Instead, we could see some profit-taking if the STI fails to clear the key 100-DMA support-turned-resistance (now hovering around 2760) once again; it has not been in its previous three attempts.

Although overall volume improved 27% to 1.8b units traded, average value/unit tumbled 40% to S$0.47, suggesting that the spotlight has moved back to the second liners.

Above 2760, we peg the next key hurdle at 2800; on the downside, we peg the key support at 2700, ahead of 2680.