Daily Markets Briefing: STI down 0.02%

Expect modest gains today.

According to OCBC, the overnight recovery on Wall Street could provide a modest boost to the local bourse today, but given the lack of strong catalyst, the STI is still likely to remain largely range-bound for now.

Here’s more from OCBC:

As before, we expect the STI to hold around 2770 to 2800 in the near term, and probably even 2740 to 2820, as more investors head out for their Jun holidays.

Overall volume fell 26% to 1.6b units traded yesterday, while average value/unit tumbled 36% to S$0.69; but this is not surprising, as Monday’s session was probably boosted by the futures roll-over effect.

However, overall market breadth continues to remain somewhat negative—losers outpaced gainers 1.7 to 1 even though the STI ended flat yesterday.