ST : Losses, but no bloodbath

Nov 29, 2009
Losses, but no bloodbath
Experts expect STI to fall by up to 3% tomorrow when it plays catch-up
By Francis Chan



Experts reckon that the benchmark Straits Times Index (STI) will probably suffer a 2 per cent to 3 per cent drop. -- ST FILE PHOTO

THERE will be losses when the Singapore stock market opens on Monday after the long weekend, but it will not be a bloodbath as global markets regroup after the Dubai sucker punch last week, say financial experts.

They reckon that the benchmark Straits Times Index (STI) will probably suffer a 2 per cent to 3 per cent drop once investors, whose hands were tied during the Hari Raya Haji holiday, hit the market.

But none foresees a repeat of the last financial meltdown.

'Yes, there may be ripple effects but I doubt it is going to bring any financial institution to its knees like in the last crisis,' said CIMB-GK regional economist Song Seng Wun.

OCBC vice-president for wealth management Vasu Menon predicts that 'the market will weaken' when it opens tomorrow as Singapore plays 'catch-up'.

He added: 'Hong Kong was down by 4 per cent (on Friday), while most other Asian markets were down between 2.5 and 4 per cent, so I wouldn't discount the possibility of the Singapore market falling by 2 per cent or so.'

ST : Home sales pace to slow

Nov 29, 2009
Home sales pace to slow
Lull likely before sector picks up from late Feb; more high-end homes expected next year
By Joyce Teo

THE unusual frenzy in private home sales till September this year is fast winding down, as launches slow.

It should be a short lull before new launches kick in from late February, after Chinese New Year. Next year, however, is expected to see a steadier and calmer pace.

And, unlike this year, more high-end launches are expected next year, experts said.

DTZ head of South-east Asia research Chua Chor Hoon expects sales activity to remain low for next month and early next year.

This is because there are few mass market projects being launched in the next few months.

Recent government cooling measures seem to have had an effect too, making home hunters and speculators more wary about wading in, she said.