Daily Markets Briefing: STI up 0.3%

Expect muted gains today.

Following the more muted Wall Street showing overnight, the local bourse could also be due for a pause, especially after the recent rebound.

Despite rising another 0.3% yesterday, we note that the STI’s price action may have formed a potential reversal signal; the daily RSI is also fast approaching the overbought region.

Last but not least, the focus continues to be on the penny stocks and second liners; although overall volume jumped 16% to 2.85b units done, total value was flat at S$1.12b, as average value/unit slipped 15% to just S$0.39.

As before, we could see some near-term consolidation around the key 2900 level before the index pushes higher again; we peg 2885 and 2920 as the initial boundaries.