Singapore’s STI is down 1.1% at 3206.11, tracking broad declines across the region, which are led by the Shanghai Composite Index’s 2.9% fall on unabated concerns over further tightening measures from Beijing, which would put the brakes on the world’s second largest economy.

“Singapore’s equities are reacting in response to near term weakness in Shanghai,” says Yeo Kee Kian, a market strategist with DBS Vickers. 

 

“I still maintain that the 3200 level for the STI will hold, but even below there I don’t see a lot of downside, maybe to 3165...ultimately the stock market, whether it goes up or down, is always supported by earnings.” The house’s current STI target is still 3500 based on FY11 earnings.

Only 67 stocks in the green today, with 413 decliners; Golden Agri (E5H.SG) takes the lion’s share of the volume, down 2.0% at $0.745. Overall, 1.40 billion shares have been traded worth $1.33 billion.