Market seen range-bound for now

MARKET analysts' recent entreaties for investors to calm down might have worked for the moment given that local shares showed signs of stabilising on Wednesday. While the Singapore market did retreat, as was widely expected, the drop turned out to be minor and more in keeping with its usual movements.

The Straits Times Index's (STI) rally the day before proved to be short-lived. The index fell 0.5 per cent or 13.29 points to 2,873 on Wednesday, and analysts say it looks likely to stay range-bound between 2,850 and 2,950 for the time being.

The dip came after China's rate cut on Tuesday evening failed to prevent another slide in the Shanghai market, which saw a keen tussle between buyers and sellers. Shanghai seesawed wildly between losses and gains of up to 4 per cent on either side before ending the day 1.3 per cent lower, which now seems relatively small compared with the plunges of its past few trading sessions. That extended its steepest five-day drop since 1996.