Mid Day Review

Singapore stocks remain weak tracking losses in rest of Asia. STI down 1.2% at 282 midday; immediate supports at 2800 & 2775. Market breadth at 7 decliners for each gainer. The biggest risk for Asia lies in the economic impact of a possible recession in Europe. Small, highly export-dependent countries like Spore would be impacted the most if recession occurs; stocks with significant revenue or currency exposure to Europe include HTL Int'l, Petra Foods, SATS, CSE Global, SIA, ComfortDelgro, NOL.