The STI is down 1.3% at 3188.45, in line with regional markets’ weakness as worries over the unrest in Egypt cap demand for equities. Volume is light at 863 million shares worth $1.01 billion, with over four decliners per gainer on the broad market.

DBS Vickers says it expects investors “to shy off stocks this week on news of the worsening unrest in Egypt over the weekend, equity markets’ negative reaction to that unrest and this being a holiday-shortened week.” 

 

But the house says despite near-term uncertainties, “we maintain our view that the current market consolidation should end at 3165, worst case at 3090.” 

 

It adds, “equities remain one of the more attractive investment asset classes...in addition, the STI is not that far away from levels seen as attractive and where firm support lies.” 

 

The house says “stubborn” resistance remains at 3230. Golden Agri (E5H.SG), the most-traded stock, is flat at $0.70, while China Oilfield (DT2.SG) also makes the actives board, +4.8% at $0.110 on higher oil prices.