STI slips in quiet, weak trading

A QUIET and weak trading session on Wednesday ended with the Straits Times Index (STI) 14.91 points or 0.45 per cent lower at 3,326.16 and with the whole market recording 145 rises versus 256 falls, excluding warrants. Turnover was 1.2 billion units worth S$1.1 billion, in line with recent averages.

Within the index, OCBC provided the greatest drag. Its S$0.16 drop to S$10.28 came with 5.4 million shares traded, cutting about six points off the STI. In the offshore and marine (O&M) sector, Keppel Corp ended S$0.07 weaker at S$8.10 with 6.4 million shares done.

Macquarie Warrants (MW) said in its daily newsletter that Macquarie Equities Research (MER) is positive on the stock and has just issued a report titled Much Better Prepared Than You Think, in which MER states that at a 2015 estimated price-book of 1.3 and price-to-earnings ratio of 9.4, Keppel Corp is close to global financial crisis-level valuations and therefore at a great entry point.