Daily Markets Briefing: STI down 0.82%

Expect modest gains today.

According to OCBC, the rebound on Wall Street overnight should provide the local bourse with a brief respite; but with the weekend looming, as well as heightened uncertainty ahead of the Brexit vote, upside could be fairly limited.

Here’s more from OCBC:

Nevertheless, the STI should recoup some of yesterday’s 0.8% tumble and also make an assault on the key 100-DMA support-turned-resistance (now hovering around 2768).

As before, continued failure to convincingly sustain above this level could send the STI sliding back towards 2700 in the near term. Above 2768, we continue to peg the key hurdle at 2800.

Although overall volume tumbled 33%, with just 1.24b units traded, total value jumped 25% to S$1.06b; this after the average value/unit jumped 86% to S$0.82, as blue chips came under profit-taking pressure.