Singapore stocks could rebound at the start of next week before moving in response to a string of data releases expected to give insight into the extent of a global economic slowdown, dealers said.
"The market has come off quite significantly over the last four weeks so you're bound to see some rebound," said Song Seng Wun, regional economist at CIMB-GK Research. On Thursday the Straits Times Index closed below 2,700 points for the first time in nearly two years, said CMC Markets, an online trading company. Over the United States and other countries will release "a lot of market-sensitive numbers" which should govern the market's direction, Song said. United States manufacturing data and employment figures are among the data expected.
"Basically, I think we're macro-watching as far as data is concerned," Song said. He described the mood as volatile and cautious.
"This time of year is always difficult for stocks anyway," Song said. In the week ended August 29, the blue chip Straits Times Index closed at 2,739.95, up 16.65 points, or 0.61 percent, from the week before.