Daily Markets Briefing: STI down 0.5%

Brace for a decline today.

According to OCBC, the pullback on Wall Street overnight is likely to see more profit-taking in the local bourse today, especially ahead of the public holiday tomorrow.

Here's more from OCBC:

Although the STI started pretty sprightly yesterday, it later gave up all its gains and more to end 0.5% lower.

As expected, the index’s continued failure to sustain above the key 2900 level has not only led to profit-taking but may have also brought out some of the bears to play.

We still believe that the STI looks technically more prone to further downside risk; while we peg the initial support at 2850, the real key support is likely around 2800.