Daily Markets Briefing: STI up 0.78%

Expect muted gains today.

According to OCBC, despite the rebound on Wall Street overnight, the local bourse is unlikely to see further strong gains, especially after the STI’s 0.8% rise yesterday; this extending the previous session’s 0.5% gains.

Here's more from OCBC:

But the recent price action suggests that the index may be starting to look toppish and inability to clear the immediate hurdle around 2843 could send the STI back towards 2820.

While daily technical indicators are somewhat neutral, we note that the recent gains were made on relatively thin interest.

Overall volume though inched up 6% to 1.38b units traded, average value/unit was flat at S$0.61; market breadth was also quite muted, with 694 names unchanged, as gainers just managed to edge out losers 1.1 to 1.