Singapore shares rebounded on Tuesday, snapping three days of losses, but the market is likely to remain cautious in the near term until more details about the European leaders’ efforts to tackle the region’s debt woes are ironed out.
At 1:00 p.m., the Straits Times Index (STI) <.FTSTI> was up 1.4%, or 36.53 points, at 2,690.84. Around 606.4 million shares worth $568 million were traded by then.
At 1:00 p.m., the Straits Times Index (STI) <.FTSTI> was up 1.4%, or 36.53 points, at 2,690.84. Around 606.4 million shares worth $568 million were traded by then.
“Generally I think most people are just trading the market, so they buy on dips and sell when the market rebounds, so no major bargain-hunting kind of activities yet,” said James Koh, an analyst at Singapore brokerage Kim Eng.
At 1:00 p.m., banking stocks were the biggest contributors to the index’s gain, with DBS (DBSM.SI) gaining 1.9%, United Overseas Bank (UOBH.SI) advancing 1.8% and Oversea-Chinese Banking Corp (OCBC.SI) 1.6% higher.
“I think today is just a technical rebound from yesterday,” Koh said. ”The banking stocks may not touch the 2008/2009 lows at this time, but there’s still quite a bit of downside from here if it turns into a crisis“.
Rig builders Keppel Corp (KPLM.SI) and Sembcorp Marine (SCMN.SI) advanced 2.5% and 2.7% respectively at 1:00 p.m.
Commodity counters were also up, with shares of Olam International (OLAM.SI) and Noble Group (NOBG.SI) rising 4% and 1.5% respectively.
Sunny Verghese, Olam’s chief executive officer, told Reuters on Monday the growing demand for food and shrinking supply would support prices in the long run.
DBS Vickers said in a report that StarHub (STAR.SI) is its top pick in Singapore’s telecommunications sector. The firm offers a yield of 7%, higher than the 6% dangled by rivals SingTel (STEL.SI) and M1 (MONE.SI), DBS said.
At 1:00 p.m., StarHub shares gained 1.1%, while SingTel and M1 were up 1% and 0.4% respectively.
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