Daily Markets Briefing: STI up 0.17%

Expect some profit-taking today.

According to OCBC, continued gains on Wall Street could see the STI extending its 0.2% rebound from Friday, inching the index ever closer to the key 3000 level.

Here’s more from OCBC:

However, with the daily RSI flattening out just a tad below the overbought region, further strong gains could still be hard to come by; if anything, we believe that selling into strength could still be a key theme this week. 

In addition, while overall volume climbed 16% with 1.45b units done, total value fell 7% to S$0.99b, as the average value/unit tumbled 20% to S$0.68, suggesting that the focus is back on the penny stocks once again. 

Investors are also likely to keep a close watch on the results from the two local banks due Thursday, where any disappointment could be used as an excuse to take profit on the broader market.