SG Market

SG Market: Spore shares are braced to take a hit after S&P made an unprecedented downgrade of US credit rating from triple-A to AA+ with further warning of potential cuts over the next 2 yrs. The Mid-East markets reacted negatively over the weekend with Israel’s bourse down 6% & Nikkei opened 1.1% lower this morning & DJ Futures also showed a drop of 178 pts. Latest news from leaders of G7 pledging to inject liquidity into the global system if so required may calm the sell-down but risk aversion remains high & we are unlikely to see any sharp rebound in the intermediate term. Support for STI stays at 2920 for now. Commodities plays & rigbuilders may continue to be worst hit, as oil prices remain under pressure