Daily Markets Briefing: STI down 0.5%

Expect muted gains today.

According to OCBC, despite continued gains on Wall Street overnight, caution is creeping in and we could see investors looking to lighten their positions ahead of the weekend, especially after the recent strong gains.

Here’s more from OCBC:

As before, the key challenge is still to convincingly retake the key 3000 level; a failure to do so is likely to bring the bears back into the market.

We also expect the market to get a bit choppier as we head into the results season proper over the next few weeks, where 3Q results are generally expected to be weak.

On the downside, we peg the immediate support at 2933 (the STI hit an intraday low of 2938.88 yesterday), ahead of 2900.