Daily Markets Briefing: STI down 0.8%

Brace for a pullback today.

According to OCBC, with the continued lackluster showing on Wall Street overnight, as well as the sharp falls in the European bourses, we could see the STI extending its pullback today; this despite already slipping 0.8% yesterday.

We also expect news of Swiber’s winding up to further weigh on sentiment, especially for the O&G plays; DBS has also announced that it had S$700m exposure to the company.

As such, we could see the key 2900 support being brought into play; a break could send the STI slipping further towards 2885 (uptrend support since Jan 2016); on the upside, we peg the initial cap at 2940, ahead of 2985.

Overall volume rose 7% to 1.456b units traded, while total value climbed 6% to S$0.92b; but average value/unit was flat around S$0.59.