SG Markets: Spore shares set to fall sharply after the bloodbath on Wall Street Thur, as fears grow over the weakening US economy and the European debt crisis, while regional mkts have opened sharply lower in response. Thursday, the benchmark STI closed down 0.7% at 3107.01, its lowest closing level since Jul19.
We already saw some pretty heavy dumping of stocks Thur and we should continue to see a lot today, with the speculative plays more at risk. Could see some switching into more defensive stocks, like telcos and REITs, but on that front people will remain selective. A pullback for the STI could find support at 2900 over the longer term, while 3000 may support nearer term. Offshore plays may be hit hard after oil prices shed more than 5.0% Thur, while cyclical stocks such as commodities and shipping names may face severe selling pressure.
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