Daily Markets Briefing: STI up 0.1%

Expect more gains today.

According to OCBC, the continued recovery on Wall Street overnight should provide further support to the local bourse this morning; the Nikkei has opened 0.7% higher.

Here's more from OCBC:

Still, we note that the local sentiment remains fairly cautious; this after the STI ended just 0.1% higher yesterday, and it could not quite conquer the initial 3302 resistance.

Again, the inability to do so (especially ahead of the strong 3357 hurdle) could see traders continuing to sell into strength.

On the downside, we peg the immediate support at 3267, ahead of 3200.

Separately, the recovery in crude prices could see some rotational play back into the badly battered O&G counters – Ezion for example jumped 6% after our Trading BUY call yesterday.