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.'