Daily Markets Briefing: STI up 1.02%

Expect more gains today.

Continued gains on Wall Street overnight could keep local sentiment fairly upbeat again today, but with the STI already up 1.0% yesterday, further gains may be fairly limited.

Here's more from OCBC:

In addition, as the index is fast approaching the key 2900 hurdle, we could see some profit-taking emerging should the STI fail to convincingly clear this psychological barrier.

In any case, the recent price action suggests that the market is looking slightly toppish as well; the gains yesterday were made on lower volume (down 26% at 1.53b units) while total market value was just up 3% at S$0.95b, although average value/unit surged 44% to S$0.62.

On the downside, we peg the initial support at 2850, and then 2800.