Buyers are mostly avoiding larger-cap stocks in Singapore and going for lower liners amid a general lack of newsflow.

The STI at midday is down 0.7% at 3,186.76, coinciding with the 50-day moving average. Support is expected at this week’s 3,164 low set on Tuesday. In contrast, the FTSE ST Catalist Index is +1.4%.

Market breadth is negative with 2 decliners for every gainer.

“Penny stocks are in favor. This is usually the case when people are short on ideas,” says a trader from a foreign brokerage.

Among such stocks, Bio-Treat (B22.SG) is +10.0% at $0.055, Sapphire (589.SG) is +33.3% at $0.02, Armarda Group (5EK.SG) is +16.7% at $0.035.

Among the large caps, commodity plays are the worst performers after recent strong gains; Noble Group (N21.SG) is down 1.9% at $2.12, Golden Agri-Resources (E5H.SG) is down 1.9% at $0.775.