Singapore blue chips slightly lower following DJIA’s fall, but shares in broader market faring tad better with gainers outnumbering decliners by small margin, says Dow Jones.

STI off 0.4% at 2,925.63 at 9:33 a.m., expected to hold above 2,900. With P/E valuations of most stock markets worldwide, including Singapore, at low teens, coupled with low interest rates, NRA Capital chairman Kevin Scully says another liquidity-driven rally for rest of 2010 can’t be ruled out: “The catalyst for this re-rating must be some stability in the pace of the economic recovery which I believe the monthly economic data will show, i.e. positive GDP growth for the US and Europe but at a more modest pace.”

FTSE ST Small Cap Index +0.2%, FTSE ST Catalist Index +0.8% as players turn to low-price plays for quick punt. Key blue-chip decliners include SingTel (Z74.SG) down 1.0% at $2.93, CityDev (C09.SG) down 1.2% at $11.80, Jardine C&C (C07.SG) down 1.6% at $32.46.