Singapore shares slumped 0.4% by midday on Wednesday in line with other Asian bourses as bearish comments from U.S. Federal Reserve Chairman Ben Bernanke added to worries about the slowing global economy.

However, the world’s largest-listed palm oil firm Wilmar International (WLIL.SI) outperformed the overall market and rose as much as 2.6%, boosted by news that China has removed a cap on retail vegetable oil prices.

China has suspended regular rapeseed oil auctions and lifted a 7-month price cap on retail vegetable oil prices, industry sources told Reuters on Tuesday.

 

By the midday break, the Straits Times Index (STI) <.FTSTI> was down 12.62 points at 3,103.33. The total value of shares traded in the morning session was $582.9 million, down from S$759.9 million on Tuesday. Local traders said they expected the STI to trade in 3,050 to 3,150 band in the afternoon.

 

Wilmar shares retraced some of its gains and were 0.9% higher at S$5.35 with almost 7 million shares changing hands at midday.

 

“The end of quantitative easing in June spells downside for the U.S. and global markets. Liquidity is going to get withdrawn and equity markets are likely to suffer because of that,” said Tey Tze Ming, a market strategist at Saxo Capital Markets.  

 

“I don’t think another round of quantitative easing will be very likely, unless we see unemployment or PMI numbers coming in worse than expected,” he added. 

 

Tey said the STI could see up to two% more downside this month and test key 3,000 level.

 

Singapore’s massage chair maker Osim International (OSIL.SI) fell as much as 4.9% to a 11-week low over concerns that its issue of convertible bonds could be dilutive in the future if its expansion plans do not meet expectations amid concerns about the outlook for the global economy.

 

By the lunch break, shares of Osim were 3.7% lower at $1.56 with over 5.8 million shares changing hands.  

 

Osim said on Wednesday it had raised $120 million by issuing convertible bonds to fund future acquisitions and for working capital needs.