STI +1.1% midday; Bargain hunting in blue chips

Singapore’s STI is up 1.1% at 3,110.62 midday, rebounding after last week’s slide, which SIAS Research attributes to “uncertainties over Egypt, China raising rates and fund managers diverting the flow of funds.”

It says the market’s bias today is upwards, after the benchmark index’s hefty recent fall, though in cautious trade.

That caution is reflected in the low volumes traded so far, with 634 million shares worth $797 million changing hands, compared with 784 million shares at this point on Friday.

Only five decliners among STI components, with most blue chips benefiting from bargain hunting after being sold down heavily last week; among notable gainers Genting Singapore (G13.SG), is 0.5% at $2.04 in active trade; Keppel Corp (BN4.SG) is up 2.0% at $11.38 after more order wins.

Analysts tip resistance at 3,118-3,120, corresponding with a series of lows for the STI tested since October, with support around 3,050 then 3,000.