Gains in Singapore shares accompanied by thin volume, suggesting buying conviction low. STI +0.7% at 3195.97 midday, not likely to clear last week’s 3216 peak for rest of session.

Overall volume only 625.7 million shares worth $591.8 million. “We expect the lull trading period to continue but activity should pick up around the Christmas period as the market positions for the new year,” says DBS Vickers; tips STI target of 3438 by end-1Q11, suggests accumulating banks, REITS, offshore & marine plays, palm oil stocks, hospitality-related shares. 

 

Small caps active in market, with most heavily traded including MAP Technology (CU7.SG), +18.2% at $0.065, MDR (A27.SG), flat at $0.005, SunVic Chemical (A7S.SG), +3.4% at $0.61, Transcu Group (E15.SG), +4.2% at $0.125.