Singapore shares could see little change while the market awaits more corporate earnings, a dealer said. "People are waiting for the banks' results. They want to make sure there are no negative surprises," said Goh Mou Lih, research head of Westcomb Securities.
OCBC bank is to report its fourth-quarter earnings next Wednesday. DBS on Friday announced that its fourth-quarter net profit fell 40 percent year on year as weak financial markets hit income.
Singapore's third bank, UOB, is to report its earnings on February 27. Goh added that the STI was taking a lead from the United States and its troubled housing sector.
"The US housing market needs to stabilise before we can see a recovery. It affects everything else and while it remains in trouble the banking crisis will just keep coming back," Goh said. Gabriel Gan, a senior vice president at AmFraser Securities, said it is "50-50" which way the market will go.
Singapore will get further insight into the ailing health of its recession-struck economy on Tuesday when the government releases key export data for January. The blue chip Straits Times Index (STI) closed on Friday at 1,705.64, down 9.71 points or 0.57 percent from the previous week.
Average volume was 844 million shares worth 864 million dollars (576 million US), compared with 834 million shares worth 809 million dollars the week before.
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