Daily Markets Briefing: STI up 0.89%

Local bourse to remain cautious today.

The Straits Times Index (STI) ended 25.17 points or 0.89% higher to 2838.65 on Friday, taking the year-to-date performance to -1.53%.

OCBC Investment Research said it came after U.S. stocks retreated from near record levels to close lower as the dollar continued to charge higher, with the ICE dollar index trading at a 13-year high. Investors taking profits on the recent rally also pressured major indexes.

"Seven out of eleven S&P 500 industries ended lower, with Health Care (-1.13%) leading the declines while Telecommunication Services (0.53%) led the gains. The index was up 0.81% for the week," OCBC said.

This pullback may keep market sentiment fairly cautious today.

Here's more from OCBC:

Gold for Dec delivery shed US$8.20, or 0.67%, to close at US$1208.70/ounce while Mar Silver decreased by 15 cents, or 0.91%, to settle at US$16.72/ounce. For the week, Gold and Silver lost 1.27% and 4.33% each.

On the upside, we peg the initial hurdle at 2850, ahead of 2865; on the downside, we peg the initial support at 2800, ahead of is subsequent support level at 2770.

Overall volume shrank 9.8% with 1.6b units traded, and the total value was down 11.0% to S$1.1b; while average value/unit fell 1.3% to S$0.66.