Daily Markets Briefing: STI down 1.1%

Expect some good news today.

According to OCBC, the rebound on Wall Street Friday and the positive Nikkei start (+0.8% currently) should bring some relief to the local bourse this morning.

Here's more from OCBC:

Although the STI slipped 1.1% in the last session, we note that the index managed to close above the key 3300 psychological support; this despite the heavy selling pressure (value traded was 50% more than Thursday; losers outpaced gainers by >2 to 1).

Having said that, we could see profit-taking emerging at higher levels as sentiment may still stay somewhat cautious in view of the increased volatility/risk. Note that the US markets will also be closed tonight.

For now, we peg the most immediate hurdle around 3318 (30-DMA, 50-DMA), ahead of 3341 (Friday’s intraday high). Immediate support at 3296 (100-DMA), ahead of minor gap at 3252-3258.