Singapore shares fell at midday on Monday, with funds seen flowing to safer assets like bonds due to the uncertainty in the market, and traders said there could be more downside to the Straits Times Index in the afternoon.
By the lunch break, the STI <.FTSTI> was down 0.65%, or 20.05 points, at 3,046.80. The total value of shares traded in the morning session was $547.9 million, compared with $554.9 million on Friday.
Local traders said the STI may fall more in the afternoon, though support is likely to kick in at around 3,000 points.
“The STI is down largely due to the weak US performance last Friday and the continuing Europe debt concern,” said Ng Kian Teck, an analyst at SIAS Research.
“Due to the uncertainties within the market, most of the funds would have flowed to safety assets such as Treasury bills, gold and so on. Equities that are able to provide stable and attractive dividend will also be preferred.”
Shares of oil rig builders Keppel Corp (KPLM.SI) and Sembcorp Marine (SCMN.SI) fell as oil prices came under pressure on expectations that Gulf exporters would keep crude supplies steady.
At midday, Keppel Corp was down 1.3% and Sembcorp Marine retreated 0.6%.
However, palm oil producer Wilmar International (WLIL.SI) outperformed the broader market, rising as much as 1.1%. By the break, the stock was up 0.8% at $5.34 on a volume of 1.7 million shares.
DBS Vickers said in a report that lower crude palm oil price means decreased input cost for processing companies such as Wilmar, though on the flip side it also means lower revenue per tonne of produce for Golden Agri-Resources (GAGR.SI), First Resources (FRLD.SI) and Kencana Agri (KCAL.SI).
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