Pennies in play as STI recoups Monday's losses

PENNIES were in heavy play again on Tuesday as the local market slouched its way towards a long holiday weekend, albeit with a slight lift from Wall Street's overnight rebound and hopes of more economic stimulus in China.

Singapore stocks managed to recoup the previous day's losses on Tuesday, with the Straits Times Index (STI) eking out a tiny gain of 0.3 per cent, or 7.42 points, to finish at 2,852.97. That took it back to where it closed on Friday, and was largely in line with analysts' predictions that the blue-chip index would encounter difficulty climbing above the 2,870 mark, let alone pushing beyond that to test 2,900 points.

It also meant that local shares were still down 15 per cent year-to-date. Depressingly, the STI is poised to be the worst-performing developed-market benchmark worldwide this year behind Greece's ASE Index in Athens, according to a Bloomberg report.