SMRT (S53.SG) gaps down at open, last off 3.6% at seven-week low $2.14, on disappointment over June-quarter earnings decline, warning of potentially lower profit for current FY, according to Dow Jones.

Having briefly gone below $2.15 (61.8% retracement of rise to 52-week high of $2.34 from May low of $2.03) to low of $2.14, next support eyed at $2.11 (June 7 low).

BNP Paribas, which has Hold call with $2.17 target, says results for 1Q11 “not a pretty start”, with performance in coming quarters possibly turning “uglier” as new Circle Line rail network continues to lose money.

Notes while ridership increasing, “it’s not ridership but profitability per ridership that matters.” SMRT’s 1Q11 net profit down 20.7% on year at $38.2 million on higher operating costs.