Expect muted gains today.
According to OCBC, further gains on Wall Street overnight should continue to keep local sentiment fairly buoyant, although we could see the usual pre-weekend profit-taking emerging towards the close, as some traders may opt to lighten their positions ahead of the key US non-farm payroll numbers due tonight; the Nikkei has eased some 0.4% in early trade.
Here’s more from OCBC:
And with the STI fast approaching the key 2800 hurdle, there could also be some reason for caution as well; this as continued failure to convincingly clear this hurdle could send the index slipping back towards 2700.
However, we think that the 2700 support should hold up, and could lead to more confident buying interest thereafter.
Above 2800, we peg the next key hurdle at 2812 (100-DMA).
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