Singapore shares may rebound slightly after sinking to their lowest levels in almost two years, dealers said. Fears for global economic health pulled down the blue chip Straits Times Index last week, and dealers said the support level was 2,550.
"We are already so low and the prices look nice. I think downside is limited from here," said one dealer. DBS Vickers said there may be a "feeble" rebound off 2,550, although it said the index was on course for further movement down toward 2,300.
In the week ended September 5, the blue chip Straits Times Index closed at 2,574.21, down 165.74 points or 6.04 percent for the week. Average volume traded for the week was 940 million shares worth 1.26 billion Singapore dollars (878 million US), compared with 833.40 million shares worth 1.01 billion Singapore dollars the previous week.