The STI is down 0.6% at 3156.88, weakening further in afternoon trade as euro-zone debt concerns resurface, hurting risk appetite.

There are 2 fallers for every gainer in broad market.

While Singapore’s market has been weak in recent sessions, most analysts expect activity and prices to pick up again after the holiday period.

OCBC says “stocks are cheap. 3Q corporate earnings were good, following the positive strength in 2Q. Together with the projected 10% rise in 2011 earnings, valuations for the market are not expensive.”

The bank notes the STI currently trades at 15.5x 2010 earnings and 14.1x next year’s.

“We expect some of the ‘laggards’ in 2010 to be re-rated in 2011, and this is likely to include some of the property and banking stocks.”

DBS (D05.SG) off 0.1% at $14.00, not reacting much to news DBS China will buy RBS’ retail, commercial operations in China. Support is tipped at 3118-3120.