Daily Markets Briefing: STI down 1.37%

Expect muted gains today.

According to OCBC, fresh weakness on Wall Street overnight could continue to keep local sentiment fairly cautious ahead of the FOMC meeting; although market does not expect the Fed to make any move just yet, market will be looking out for clues on when the next rate hike could take place.

Here’s more from OCBC:

While the STI extended its losses, slipping another 1.4% yesterday, it still managed to hold above the key 2900 support; we note that the overall volume has also fallen nearly 29% to 1.1b units traded, suggesting the sell-down was pretty contained.

After the recent correction, we expect the index to consolidate around this key level and range trade between 2868 and 2919 for now.

Key support remains at 2800; key resistance at 3000.