STI down 0.5%; traders, offshore plays lead fall

Singapore’s STI is down 0.5% at 3076.96, as markets across the region trade lower on heightened concerns over the Middle East situation; a late session lift for the STI looks unlikely, with U.S. stock futures pointing to a lower open on Wall Street. 

Volume is low with just 642 million shares traded worth $627 million; there are 2.5 decliners per gainer in the broad market. “Worries over high oil prices adding to inflationary pressure and trimming companies’ earnings remain at the front of investors’ minds, especially with the Chinese inflation data due Friday,” says an analyst at a local brokerage. 

 

Commodity traders Olam (O32.SG) and Noble (N21.SG) are down 1.9% and 2.8%, respectively. While rig builders Keppel (BN4.SG) and SembCorp Marine (S51.SG) are down 0.8% and 1.4% respectively. 

 

Among the few gainers on the STI, UOB (U11.SG) is up 0.5% at $18.80, while StarHub (CC3.SG) is up 0.4% at $2.63. Analysts say the STI is likely to find support at 3040-3050, with resistance at 3100, then 3120.