Expect muted gains today.
According to OCBC, although Wall Street closed mostly flat overnight, it was off early highs, suggesting that the sentiment remains largely cautious ahead of the key jobs report due Friday.
As such, we are likely to see the muted showing spill over to the local bourse, and possibly even extend the recent correction following the recent 15% rally; this as the daily MACD has just cut down, while the RSI is slipping rapidly towards the 50% level.
Here’s more from OCBC:
On the broader market, overall volume rose 15% to over 2.5b units traded; but average value has dropped 36% to just S$0.36/unit, with the interest firmly back on the penny stocks, likely driven by talks of potential M&As/privatizations.
However, potential window dressing may emerge towards the month end, with focus on key index components like Singtel, KepCorp, and the banks.
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