Singapore shares may open tad lower on Tuesday after Wall Street indices were mostly flat as investors chose to wait on the sidelines amid uncertainty over the euro zone’s debt woes and as the year-end approaches. Singapore’s benchmark Straits Times Index <.FTSTI> rose 0.28% on Monday to 3,181.41 points.
Here are some stocks and factors to watch:
Risk of more China tightening measures, concerns over euro-zone debt woes piling pressure on Singapore shares.
Decliners outnumber gainers by more than 4 to 1.
STI off 1.1% at 3,155.77 midday. If current November low of 3,150 set earlier this month fails to hold as support, next support expected at 3,119 (Oct. 29 trough).
“We reiterate our sell into strength stance as momentum to the downside gains and the MACD histogram show no sign of turning,” says UOB KayHian.
Overall volume light, at 816.6 million shares worth $799.6 million, in line with year-end market lull. Except for Genting Singapore, down 2.9% at $1.99, all other stocks on top-10 most active list below $1.00 each, including Gallant Venture (5IG.SG), +15.7% at $0.295, MDR (A27.SG), flat at $0.005, Transcu Group (E15.SG), off 3.9% at $0.125.
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Singapore’s benchmark Straits Times Index fell 1.95% to 2,751.88 points yesterday.
Singapore stocks are expected to trade lower, weighed down by concerns about the euro zone’s debt woes and the outlook for the global economy following last week’s weak US jobs data.
Singapore stocks flat at midday after choppy morning performance as buying activity tempered by renewed concerns over sovereign debt woes in Europe, reports Dow Jones.
The STI is flat at 2,886.04 (off 0.01%) after drifting in tight 2,878-2,897 band. Immediate resistance at 2,900, support at 2,850. Market breadth tad negative while volume lighter than yesterday’s midday level of 1 billion shares at 678.2 million, still driven mainly by small caps.
The role of Wall Street firms in deals that may have helped Greece mask its debt woes are under scrutiny in the US, the Federal Reserve chief has said. Ben Bernanke said the Fed and the US financial watchdog were “looking into a number of questions” related to banks’ derivatives arrangements with Greece.
Singapore shares reversed earlier gains as regional pullback deepens amid continued concern over ripples from Europe debt woes.
The STI is off 0.6% at 2,667.39 vs its morning high of 2,700.85 (+0.6%), with the index on track to finish at two-month low with next psychological support tipped at 2,650.
Inconclusive US pre-market futures did little to lift mood (S&P 500 down 1.5 points, DJIA +5 points).
The following companies may have unusual price changes in trading today, say Bloomberg and Thomson Reuters. Share prices are from the previous close. The Straits Times Index dropped 1.1% to 2,732.12.
US stocks rose last night, helping the Dow post its fifth straight monthly gain, on hopes that the possible fallout from Dubai’s debt woes will be contained.
