Bourse flat with many investors on sidelines
Investors were weighed down by fresh worries yesterday, even though there was a palpable sense of relief at the growing evidence that the worst of the global credit crunch is over.
United Overseas Bank’s (UOB’s) first-quarter results gave further proof that Singapore banks had successfully contained any fallout from the credit crisis. Still, market sentiment took a hit from crude oil prices hitting a fresh high of US$122 a barrel.
As a result, the benchmark Straits Times Index (STI) ended effectively flat, with a meagre gain of 0.71 point to 3,248.75, after moving within a tight trading range throughout the day.
Gains made by local banks were effectively cancelled out by losses incurred by counters such as Singapore Airlines and car distributor Jardine Cycle & Carriage, whose fortunes were linked to oil prices.
‘Essentially, prices are not going anywhere because few traders believe that the STI can successfully breach the 3,300 level,’ said a dealer.
On Monday, UOB Kay Hian had noted that, based on a technical analysis of the STI, the downside risk is high.
Except for banks and the Singapore Exchange, very few STI stocks had surpassed their previous peaks in the latest rebound, it noted.
Another worrying sign was the quiet market conditions, with a mere 1.53 billion shares worth $1.77 billion changing hands yesterday.
This signalled a lack of willingness among most investors to commit to fresh stock positions, as they settled down to a ‘wait-and-see’ attitude.
Elsewhere in the region, it was pretty much the same story as share prices languished within a tight trading range, as investors kept to the sidelines, uncertain about future market directions.
Hong Kong’s Hang Seng Index ended 0.3 per cent higher, while Malaysia’s Kuala Lumpur Composite Index was up 0.1 per cent. However, China’s Shanghai Composite Index fell 0.7 per cent.
But China plays in Singapore sprang back to life, after waste-management specialist Sino-Environment Technology said that it expected to recognise about 60 million yuan (S$11.7 million) of revenues from its desulphurisation contracts from the second quarter.
Sino-Environment’s 33-cent jump to $1.90 helped to lift the FTSE ST China Index by 3.4 per cent to 509.78.
Source : Straits Times - 7 May 2008
Loading ...
Post a Comment
Tell me a bit about yourself; who you are, where you're from, what information you would like to see on this site. As I continue to provide you with Singapore property happenings, your feedback will encourage me to post more frequently. Thank you.