The STI is +0.3% at 3237.76 midday, after earlier trading flat-to-slightly lower; “We’re up tracking Hong Kong’s Hang Seng index, which has gone up quite nicely by about 250 points,” says a trading representative at a local brokerage. “I think from here, we’re likely to trade in a range, I don’t think the market is expecting a big fall,” he adds. 

Volume is quite thin at 916 million shares traded worth $831 million, reflecting limited corporate news flow in the run up to earnings season, which kicks off Friday with SPH’s (T39.SG) 1Q results. 

 

The STI’s resilience today is encouraging after Monday’s 1.0% fall, which Kim Eng says presented “clear momentum on the downside” after the 3240 support was taken out. 

 

The house tips stronger support at 3200, says in the absence of clearer fundamental signals, yesterday’s fall “appears to be a natural market correction.” Golden Agri (E5H.SG) is most active today; the stock is flat at $0.775.