Daily Markets Briefing: STI down 1%

Brace for profit-taking today.

According to OCBC, the rebound on Wall Street overnight could bring some reprieve for the local bourse this morning, especially after the STI’s 1.0% slide yesterday.

Here’s more from OCBC:

Having said that, we believe that the overall sentiment could remain relatively cautious, as the near-term technical indicators have turned slightly more negative. 

And if the STI fails to regain the initial 2850 support-turned-resistance level, we could still see further downside risk, as the market may need to see the index convincingly hold above the key 2800 support before buying interest returns. 

Overall volume rose 16% to 1.61b units traded, while total value climbed 24% to S$1.33b, as average value/unit gained 8% to S$0.82, led by the continued selling in local bank stocks.