Singapore shares surrender early gains by end of morning session as sentiment hit by weakness in China bourses on concerns over more state intervention in Chinese property market, says Dow Jones.

STI off 0.2% at 2,920.67 midday vs +0.5% at 2,938.89 earlier, expected to hold above 2,900 for rest of session. Market breadth negative vs four gainers for every decliner initially.

NRA Capital chairman Kevin Scully remains bullish despite near-term jitters, citing decent P/E valuations for global equities: “The (second-quarter) results will affirm these attractive valuations which I believe will trigger the resumption of the markets’ uptrend.”

Adds participation should pick up with summer holiday period nearing end: “Fund managers should be back and taking stock of their investment weightings in the last two weeks of July.”

Notable decliners among blue chips include Jardine Matheson (J36.SG), off 1.7% at US$39.82 ($55), OCBC (O39.SG), off 1.1% at $8.90, NOL (N03.SG), off 1.0% at $1.99.