But expect limited boost today.
The Straits Times Index (STI) ended 18.91 points or 0.64% higher to 2981.54 on Monday, taking the year-to-date performance to +3.43%.
According to OCBC Investment Research, this came as U.S. stocks retreated as the Dow Jones Industrial Average pulled back further from the psychologically significant 20,000 milestone, although the Nasdaq bucked the weak trend to finish at an all-time closing high for a second session in a row.
Meanwhile, eight out of eleven S&P 500 industries ended lower. The best performer was Health Care (0.44%) while the worst performer was Energy (-1.48%).
"The mixed showing on Wall Street overnight is unlikely to provide much of a boost to the local bourse today," OCBC said.
Here's more from the brokerage firm:
We note that the RSI continues to turn up, hovering around 69%, although the daily MACD continues to look pretty positive.
On the upside, we peg the immediate resistance at 3000, ahead of 3040. On the downside, we peg the immediate base to 2970 resistance-turned-support level, followed by the next support at 2930.
Overall volume fell 1.7%, with 2.1b units traded, but total value lost 23.4% to S$0.8b, while average value/unit fell 22.4% to S$0.39.
Do you know more about this story? Contact us anonymously through this link.