Daily Markets Briefing: STI down 1.01%

Expect muted gains today.

According to OCBC, the sharp sell-down on Wall Street last Friday is likely to add further to the already pessimistic local sentiment this morning; the Nikkei has fallen 1.2% in early trade.

Here’s more from OCBC:

As expected, we saw a gap down last Friday, with the STI opening below the initial 2950 support, and then closing some 1.1% lower.

With the RSI fast approaching the oversold region, we may get a technical rebound soon; but looking at the negative MACD, investors could be looking to sell into strength or using any bounce to get rid of stale longs.

Also with the corporate earnings season drawing to a close, the dearth of news could send more investors to the sidelines; but having said that, we do expect those with corporate developments like potential M&As to remain in play.