Daily Markets Briefing: STI up 0.1%

Brace for pullback today.

According to OCBC, although the STI recovered from early losses to end 0.1% higher yesterday and also extend the previous session’s 0.9% gains, we are unlikely to see further gains following the muted overnight showing on Wall Street.

Here’s more from OCBC:

Instead, we expect the index to range trade between 2770 and 2740 in the near-term, and between 2800 and 2700 over the medium-term; this as the market winds down ahead of the Jun holidays.

While overall volume was flat with 1.7b units traded, average value/unit fell another 25% to S$0.41, as interest continues to centre on penny plays; but we could start to see some profit-taking on some of the local banks after the recent rebound.