Daily Markets Briefing: STI up 0.04%

Expect modest gains today.

According to OCBC, the rebound on Wall Street overnight could continue to provide some support to the local bourse this morning, potentially extending yesterday’s 0.04% recovery.

Here’s more from OCBC:

However, it remains to be seen if the index has sufficient positive momentum to test and clear the key 100-DMA support-turned-resistance (now hovering around 2758); a continued inability to do so does not bode well for the market in the medium term.

Instead, we could see more short interest coming back into the market, keeping the old adage “sell in May and go away” alive.

Separately, the market saw overall volume surge 150% to nearly 3.8b units traded, but play was centred largely on penny plays as average value tumbled 68% to just S$0.23/unit; some of these include those previously linked to the 2013 penny crash.