The STI is down 1.2% at 3066.11 after the lunch break as investors expect European stocks to open lower on fears that the political crisis in Egypt could disrupt the Suez Canal and might spark political upheavals in other Arab nations.
Kim Eng Securities suggests switching to yield plays. “We are stringent in our selection, picking only stocks with stable businesses and the ability to sustain a good dividend payout,” the house says.
On the 30-STI, commodity firms and banks remain the worst performers. Noble Group (N21.SG) is down 3.2% at $2.13 on worries of Egypt crisis affecting global commodities trade. Olam International (O32.SG) is down 2.0% at $3.01 while Wilmar International (F34.SG) is off 0.8% at $5.27. DBS Group Holdings (D05.SG) is down 1.2% at $14.64 after reporting slightly better-than-expected earnings that failed to impress investors. Oversea-Chinese Banking (O39.SG) is down 0.8% at $9.51, and United Overseas Bank (U11.SG) is off 0.9% at $18.66.
A trader tips major support for the STI is at 3040.