Singapore stocks may stage technical rebound after yesterday’s heavy losses, although sentiment expected to remain cautious with investors watchful of developments in Europe, Korean peninsula, says Dow Jones.
 

The STI may face resistance at 2,700 after closing below that level yesterday for first time since February, down 2.7% at 2,650.61; support at 2,605 (minor low in October). “We have been overweight on cash for our long funds in the past few weeks. However, for our tactical portfolio, involving trading and short-term positions, we have been going short. But we didn’t utilize all the short positions, just 50%, as we believe a strong rebound will happen soon (after the recent sharp pullback),” says portfolio manager at European fund based in Singapore.

Among STI components, high-beta plays may lead rebound after underperforming peers yesterday; Neptune Orient Lines (N03.SG) down 6.9% at $1.76, Olam (O32.SG) off 4.3% at $2.21, Noble Group (N21.SG) off 4.2% at $1.61, Golden Agri-Resources (E5H.SG) off 5% at $0.48.