Singapore’s STI is up 0.5% at 3199.42 midday, rebounding slightly after recent losses, but in low volume of just 695 million shares traded worth $536 million.

Market breadth is slightly positive. DBS Vickers says despite last week’s market sell-off, “we maintain our view for STI to head for 3438.” The house’s fundamental objective stays at 3500, based on 15.8X FY11F earnings. 

 

“The important thing to stress is that the current correction is short-term in nature. The major rising trend is intact and index will remain above its 200-day exponential moving average (currently at 3040).” 

 

The house adds, the index will not fall much below 3100 even in a worst-case scenario and says there are a few N/T support levels which could halt the current correction, but 3165 seems the more likely bet, with the worst case downside at 3090. 

 

SIA (C6L.SG) is +0.8% at $15.18, after announcing new fuel surcharges; Suntec REIT (T82U.SG) is down 0.6% at $1.57 after its 4Q earnings.