Shares down at midday on US debt issue, but near support level

Singapore shares fell at midday on Monday, in line with the regional markets, with investors shunning risk as U.S. lawmakers continued their bickering despite a looming debt deadline.

By the lunch break, the Straits Times Index (STI) <.FTSTI> was down 0.93%, or 29.49 points, at 3,153.46. The total volume of shares traded in the morning session was 638.2 million and turnover was $629.3 million.
This compares with Friday’s volume of shares traded in the morning session of 884.8 million shares, while turnover was $908 million.

 

“Investors’ sentiment was dampened by the stalled U.S. debt deal,” said Rieve Ko, a technical analyst at SIAS Research. “As traders took the opportunity to sell, we would expect the STI to fall back to it 200-day moving average support of 3,140 in the next few days.”

 

“The STI should trade between its immediate support and resistance levels of 3,150 and 3,180 respectively after the midday break,” he added.

 

Shares of casino operator Genting Singapore (GENS.SI) fell on continuing concerns that it may report lower second quarter earnings and that rival Marina Bay Sands has gained significant market share.

At midday, Genting shares were down 2.2% at $1.795 on a volume of 34.5 million shares. The stock was the highest traded by value so far.

 

In Singapore’s property sector, analysts saw increased policy risk following data that show HDB resale flat prices rose 3.1% quarter-on-quarter in the second quarter and private home prices were up 2%.

 

“So far, prices are still on a runaway track, albeit at a slower pace in the private side and a faster pace in the public side,” said Vikrant Pandey, an analyst at UOB Kay Hian. “This heightens the risk of additional severe policy measures especially for the public housing segment.”

 

At midday, CapitaLand (CATL.SI) fell 1.7%, City Developments (CTDM.SI) retreated 2.7% and Keppel Land (KLAN.SI) was down 2.3%.

 

Singapore’s Midas Holdings (MIDA.SI), which produces aluminium components used in trains, fell as much as 5.5% on worries that orders will slow following a train crash in China.

 

DMG & Partners said in a report that the Chinese authority is likely to review safety controls in the country’s railway infrastructure and this may slow down the award of future contracts.

 

By the break, Midas shares were down 4.7% at $0.605 on a volume of 11.7 million shares, 1.6 times the average daily volume so far this year.