Buyer fatigue seems to have surfaced in Singapore bourse as stocks struggling to head higher amid thin volumes, says Dow Jones.

STI +0.4% at 2,968.13 in 2:33 p.m. vs +0.7% at 2,977.16 in morning trade. Any further upside likely minimal, with 2,984 (April 30 high) expected as resistance.

Market breadth still positive but narrower at about 1.5 gainers for every decliner vs 7 for 1 in early trade. Market valuations remain inexpensive, says Deutsche Bank, but bottom-up stock picking will be increasingly significant as Singapore’s economic growth moderates in 2H10.

“The economy is one of the most leveraged to G7 (economies’) growth and remains vulnerable to external macro uncertainty, despite the government’s sound fiscal position. During past crises, Singapore has performed largely in line with other Asian markets,” says Deutsche Bank.

Mid, small caps most active in market, led by Genting Singapore (G13.SG), flat at $1.20, Cosco (F83.SG), +0.6% at $1.62, China Hongxing Sports (BR9.SG), +4.0% at $0.13.