SINGAPORE, Oct 26 (Reuters) - Singapore shares fell 0.2 percent by midday on Tuesday, in line with Asian bourses and weighed by losses in Singapore Exchange Ltd on concerns it may be overpaying in a bid to take over Australia's ASX Ltd (ASX.AX).
By the lunch break, the Straits Times Index (STI) .FTSTI was down 6.54 points at 3,175.54. Total market volume was about 970 million shares.
"The STI looks overbought after its sharp rally in September. Moreover, as we head into the earnings announcement season, investors are likely to stay on the sidelines," said Phua Ming Weii, a technical analyst at Phillip Securities.
The STI had risen five percent in September. Phua added that he expected the STI to find support at 3,150 points this afternoon, with market sentiment leaning towards a more bearish stance.
Shares of Singapore Exchange (SGXL.SI) fell 3.2 percent to a one month low of S$8.66, weighed by concerns from investors it may have overpaid for its $8.3 billion takeover bid of Australian stock exchange operator ASX Ltd.
Credit Suisse had also downgraded Singapore Exchange to "underperform" from "outperform" and cut its target price to S$7.50, citing the takeover bid as "unconvincing" and potentially destructive to return on equity.
Shares of Singapore's Mapletree Industrial Trust MAPI.SI fell 1.8 percent at S$1.07, in its third-straight session of losses as investors took profit after a sharp rise on its market debut last Thursday.
However, rubber firm GMG Global (GMGG.SI) outperformed the broader market, rising as much as 3.2 percent on Tuesday after it reported better-than-expected third quarter net profit.
By midday, GMG shares were traded at S$0.315 with over 50 million changing hands.
The firm said its July-September net profit was S$16.4 million, reversing a loss of S$371,696 a year earlier, helped by higher selling prices for rubber.
(source:reuters.com)
No comments:
Post a Comment