Daily Markets Briefing: STI down 0.3%

Brace for a pullback today.

According to a report by OCBC, the STI’s rebound yesterday was short-lived once again, with early gains turning into a 0.3% loss by close. And with the sharp pullback on Wall Street overnight, the local bourse could be heading for its 13th losing session in 14 today.

Here’s more from OCBC:

We note that the selling picked up almost immediately after the index was unsuccessful in trying to re-take the key 100-DMA support-turned-resistance (then at 2763, but has eased 2761 now).

As before, the continued failure to do so does not bode well for the medium-term outlook; and we see risk of the STI sliding further towards the key 2700 support, breaking which, could bring the next one at 2782 into play.

We continue to peg the next key hurdle at 2800.