Singapore shares may pull back in early trade on DJIA’s fall Friday sparked by lingering unease over global economic prospects, according to Dow Jones.

Support for STI, which closed down 0.4% at 2,936.48 Friday, remains at 2,900, with any upside likely capped at 2,969 (Aug 11 high).

“The STI has now transited into a consolidation phase,” says OCBC Investment Research analyst Philip Teo, noting index’s tight 2,915-2,952 trading band last week: “This suggests that the 15% rally from end May to early August might have exhausted and the index could be taking a breather before extending a further correction in the weeks ahead.”

Shares of companies with significant exposure to Australia, such as SingTel (Z74.SG), AusGroup (5GJ.SG), Ezion (5ME.SG), may retreat on political uncertainty stemming from country’s hung parliament; SingTel (Z74.SG) closed down 0.3% at $2.96, AusGroup +1.0% at $0.49, Ezion down 1.5% at $0.64.