Singapore shares were 1.1% lower by the midday break on Tuesday in line with other Asian bourses as worries over Ireland’s debt woes and a possible contagion effect in the euro zone kept investors at
bay.
By the break, the Straits Times Index (STI) <.FTSTI> was down 35.15 points at 3,155.77. Total market volume was 840 million shares.
"The euro zone uncertainties may cause the U.S. dollar to strengthen and we’re seeing some weakness in the overall equity markets. The market has been doing quite well, not only in Singapore but in the region, and this (news) is a chance for people to take some money off the table especially towards the year-end," said Andrew Chow, an analyst at UOB Kay Hian.
He added that the STI may be lacking positive catalysts going into the next year, as earnings visibility remains unclear.
The STI is expected to remain in the negative region this afternoon, but will find support at 3,150 points, traders said.
Shares of property developers like Keppel Land (KLAN.SI) extended Monday’s losses, as investors continued to trim their positions after Hong Kong announced fresh measures to cool its property sector.
Keppel Land fell 1.5% to $4.67 by midday, while rival City Developments slid 2.2% to $12.30.
However, Singapore-listed coal miner Straits Asia Resources (STRL.SI) outperformed the index and rose as much as 1.2% to 42.56 after Credit Suisse upgraded the stock, traders said.
Credit Suisse upgraded Straits Asia to “outperform” from “neutral” and raised its target price to $3.10 from $2.20, citing potential upside versus its peers if it is granted a permit for its “Northern Lease” coal mine in Indonesia in the next three months.
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