Daily Markets Briefing: STI down 0.73%

Expect muted gains today.

According to OCBC, further weakness on Wall Street last Friday could continue to weigh on local sentiment, potentially extending the STI’s 2-day losing streak.

Here's more from OCBC:

Previously, we note that the STI was ripe for a healthy correction following the strong run-up over the previous five sessions; daily RSI has turned down just shy of the overbought region.

As before, we peg the immediate support around 2820, ahead of the key 2800 psychological level; on the upside, we peg the initial hurdle at 2880, ahead of the strong 2900 psychological level.

Meanwhile, overall volume picked up on Friday, +29% with 1.45b units traded; but total value was just up 3% at S$966.6m, as the average value/unit slipped 20% to S$0.67.