Daily Markets Briefing: STI up 0.6%

Brace for a pullback today.

According to OCBC, the pullback on Wall Street overnight could also spark a similar move in the local bourse today; the Nikkei is already down 0.6% in early trade.

Although the STI recovered 0.6% yesterday, we note that the overall volume has fallen some 23%, while the average value/unit was little changed at S$0.49.

Here’s more from OCBC:

In addition, the inability of the STI to clear the initial 2850 hurdle (only hit an intraday high of 2846 yesterday) does not bode well for the bulls in the near term; hence a pullback towards 2800 looks likely.

And for now, we expect to see the STI range trade between these two levels until we see more colour from the 1Q16 earnings due over the next 40 days or so.