Daily Markets Briefing: STI down 1.09%

Expect muted gains today.

According to OCBC, the muted closing on Wall Street overnight is likely to keep local sentiment cautious again.

As before, we saw selling into strength taking place yesterday after the index failed to test the key 2931 hurdle; this subsequently led to a breach of the key immediate 2900 support, OCBC said.

Here’s more from OCBC:

While we do not rule out an attempt to retake 2900, the slightly more negative daily technical indicators suggest that the index is unlikely to be able to sustain above 2900 for long.

On the downside, we peg the next support at 2850, ahead of 2800.

Interestingly, we saw the average value of units traded creep up above S$1; but we believe this is mainly driven the strong buying interest in NOL as well as profit-taking on the banks.