Singapore share prices could rebound as investors search for bargains following recent declines but concerns over the lumbering US economy is likely to be a dampener, dealers said.
"The market is waiting for a catalyst," said Chan Tuck Sing, head of sales at UOB Securities.
Predicting how the main Straits Times Index could move was a tough call, Chan said, but a technical rebound was possible as the benchmark was nearing support levels. Investors are also likely to closely monitor the escalating crisis in the US mortgage sector, analysts said.
A report by the Mortgage Bankers Association showed US home foreclosures shot up to record levels in the fourth quarter and the Federal Reserve said debt on homes owned by Americans exceeded equity for the first time since the central bank began tracking the figures in 1945. The Fed's policymakers are expected to further cut rates by as much as 75 basis points when they next meet on March 18.
For the week ended March 7, the benchmark Straits Timex Index closed at 2,866.28, down 160.17 points, or 5.3 percent, from the previous week.
Average daily volume was 1.36 billion shares valued at 1.65 billion Singapore dollars (1.20 billion US), compared with 1.59 billion shares worth 1.77 billion Singapore dollars the week before.