Daily Markets Briefing: STI down 0.79%

Expect muted gains today.

According to OCBC, the modest rebound on Wall Street last Friday night could help soothe some frayed nerves in the local bourse this morning; although overall interest could remain fairly muted with HK and China markets shut for Ching Ming Festival today.

Here’s more from OCBC:

Even though the STI appears to be holding up well above the key 2800 support, any rebound is likely to be capped by the initial 2850 hurdle; and as before, continued failure to clear this resistance could bring on the shorts again.

Meanwhile the spotlight is likely to remain on the second liners, with market talk still focused on potential M&As and even privatization; but we note that several blue chips like the banks are starting to look more interesting after the recent correction, and may be due for a technical rebound.