Wednesday, April 28, 2010

STI off 1.5%, ‘Run first, think later’, says analyst

Written by The Edge
Wednesday, 28 April 2010 12:44
Pullback in Singapore shares fails to generate bargain-hunting as investors unsure how Europe’s sovereign debt problems will pan out following Standard & Poor’s rating downgrades, says Dow Jones.

The STI down 1.5% at 2,947.02 midday, barely above last week’s low of 2,943, which still stands as immediate support. All FTSE ST sub-indexes remain negative, with market breadth at six decliners for every gainer.

“What we saw yesterday on the news of Greece’s downgrade is a sudden shift from risk appetite to risk aversion. Akin to someone shouting ‘fire’ in a crowded cinema, it provokes a ‘run first, think later’ reaction,” says Phillip Securities analyst Phua Ming-Weii.

On brighter note, volume light at 906.9 million shares, suggesting selling pressure contained. Rig builders, Singapore Exchange (S68.SG), Fraser & Neave (F99.SG), Jardine group lead decline among blue chips.

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