Daily Markets Briefing: STI down 0.09%

Expect muted gains today.

According to OCBC, renewed weakness on Wall Street last Friday is likely to weigh further on local sentiment this morning; the Nikkei has opened 1.3% lower.

Here’s more from OCBC:

Although the STI ended just 0.1% lower last Friday, and also off its intraday low, we note that the average value per unit traded has jumped to above S$1; this suggesting that the interest on penny stocks may also be fading.

As before, the inability to sustain itself above the key 3000 level does not bode well; we already note of the earlier failure to stay above the key 3049 level (38.2% retracement of the fall from 3549 to 2740). 

On the downside, we peg the initial support at 2950, ahead of 2900.