0007 GMT [Dow Jones] STOCK CALL: Singapore’s Straits Times Index (STI) could fall to 1800, which would mean further downside for SGX (S68.SG) shares, says Citigroup. “History suggests SGX’s share price should slide further until the STI troughs, if the recession deepens, we can make a case for the STI to retrace to 1800 by mid-2009,” says broker. Notes previous STI bear markets have lasted longer than current one, seen larger retracements from peaks. Says Singapore slipping into technical recession, may lead to longer downturn. Adds profit expectations for SGX still largely dependent on volatile securities market turnover, which broker believes will continue to wane until bear market comes to an end. Reiterates Sell call with unchanged S$4.70 target price. Shares closed +0.9% at S$6.51 yesterday; STI closed flat at 2477.60. (KIG)
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0007 GMT [Dow Jones] STOCK CALL: Singapore’s Straits Times Index (STI) could fall to 1800, which would mean further downside for SGX (S68.SG) shares, says Citigroup. “History suggests SGX’s share price should slide further until the STI troughs, if the recession deepens, we can make a case for the STI to retrace to 1800 by mid-2009,” says broker. Notes previous STI bear markets have lasted longer than current one, seen larger retracements from peaks. Says Singapore slipping into technical recession, may lead to longer downturn. Adds profit expectations for SGX still largely dependent on volatile securities market turnover, which broker believes will continue to wane until bear market comes to an end. Reiterates Sell call with unchanged S$4.70 target price. Shares closed +0.9% at S$6.51 yesterday; STI closed flat at 2477.60. (KIG)
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