Singapore share prices will track persistent concerns over the fallout from risky housing loans in the United States, dealers said. They said local shares have already been battered by the turmoil in global equities and financial markets sparked by a crisis in the US sub-prime credit sector, with the Straits Times Index (STI) falling for the third straight day on Friday.
For the week ending August 17, the index tumbled 228.47 points, or 6.8 percent to 3,130.71. Average daily volume totalled 2.67 billion shares worth 2.79 billion Singapore dollars (1.82 billion US dollars), compared with 2.44 billion shares worth 2.70 billion dollars the previous week.
The STI mounted a dramatic comeback from a decline of up to six percent to narrow down losses as bargain hunters pounced on attractive stocks after the index fell below the 3,000-point psychological support level.
Fraser Securities research head Najeeb Jarhom said he does not expect a convincing recovery in the weeks to come. "The market could try to establish support around the 3,000-point level but there is a risk of a further downside if Wall Street continues to weaken," Jarhom said.