Daily Markets Briefing: STI down 1.21%

Brace for a pullback today.

According to OCBC, lthough the STI managed to claw its way back above the key 2800 support yesterday after paring some of its earlier losses to end 1.2% lower, this may all be in vain in wake of the continued correction on Wall Street overnight.

As such, the STI could head lower once again, bringing the next support at 2770 (23.6% retracement of the fall from 3550 to 2528); but a break of which could see the index easing further to 2740.

Here’s more from OCBC:

While overall volume was relatively flat at 1.6b units traded, the average value/unit jumped 45% to S$0.71; this as some of the profit-taking switched over to the blue chips like the banks and KepCorp and SCI.

On the upside, we expect 2850 to remain the next hurdle (but the ability to sustain above 2800 now remains in doubt).