Daily Markets Briefing: STI down 0.6%

Brace for a pullback today.

According to OCBC, the pullback on Wall Street overnight could continue to weigh on local sentiment, extending the STI's 0.6% pullback.

Here’s more from OCBC:

As before, we note that the STI does look ripe for a healthy correction, given the strong run-up over the previous five sessions; the overall market was also starting to look a tad overbought.

For now, we peg the immediate support around 2820, ahead of the key 2800 psychological level; on the upside, we peg the initial hurdle at 2880, ahead of the strong 2900 psychological level.

Overall volume was just over 1.1b units traded, while total value inched up slightly to S$935m, which also raises the average value/unit to around S$0.84; not surprising given that investors have moved to take profit on the recent strong gains in some of the blue chips.