Market likely to languish amid thin trading

LAST week's column discussed a pattern taking shape, one that's discernible from price movements over the past few weeks - namely, the Straits Times Index (STI) appeared stuck in a holding, trading range, though with a downward bias.

Combined with a loss of momentum and liquidity in penny stocks, the prognosis then was not overly optimistic. As it turned out, this was the case as the index weakened and interest in low-priced issues continued to dissipate.

Going forward, it's difficult to envisage any substantive change in the days ahead with both blue chips and penny stocks likely to languish in thin trading volume.