Daily Markets Briefing: STI up 1.14%

Expect some profit-taking today.

According to OCBC, the rebound on Wall Street overnight could continue to buoy local sentiment, extending the STI’s 1.1% gains yesterday; the Nikkei is up 1.2% in early trade.

With the rapid re-taking of the key 2800 hurdle, we could see further gains, probably driven in part of short covering; the next hurdle lies at 2850, ahead of the key 2900 resistance.

Here’s more from OCBC:

Having said that, investors should not get carried away as the medium-term fundamental outlook for both the economy and corporates remain muted. 

As such, we could see profit-taking rapidly emerging should the index fail to convincingly test/clear the 2900 level. 

On the downside, we peg the initial support at 2800, ahead of 2750.