Daily Markets Briefing: STI up 0.6%

Expect modest gains today.

According to OCBC, continued gains on Wall Street overnight should bring more cheer to the local bourse; but further sharp gains may be limited after the STI’s 0.6% rebound yesterday.

Here’s more from OCBC:

While we could see the index trudging higher towards the next key resistance at 2800, failure to convincingly clear this hurdle could spark profit-taking once again.

Currently, the daily technical indicators are still drifting sideways albeit with a modest positive bias. However, the general tone is likely to remain cautious as we head into the June holidays, as well as a potential U.S. rate hike next month.

Overall market volume gained 13% to 1.9b units traded; but average value/unit dipped 6% to S$0.44, as the penny stocks remain in play.