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Singapore: Penny rally shows signs of flagging
THE penny-stock rally of the past fortnight at Singapore Exchange appears to be running out of steam, judging by Tuesday's trading session.
Instead of a total turnover of 2.5-3 billion units and a unit average of S$0.30-0.40 that punters had become accustomed to earlier this month, volume amounted to just two billion units worth S$1.3 billion for an average of S$0.65.
The Straits Times Index (STI), in the meantime, enjoyed a mild rebound after Monday's 21-point sell-off, rising 5.36 points or 0.15 per cent to 3,508.61, thanks mainly to gains in the Jardine stable. Excluding warrants, the advance-decline score was 262/199.
Fifteen of the top 20 most actively traded stocks were priced below S$0.20. Three STI components - Singtel, Noble Group and Genting Singapore - made it to the list.
Brokers said there should be no real surprises at the loss of penny-stock momentum since the rally had been started by proprietary desk traders in the first place.
"By the very nature of their job, prop traders have to hit and run," said a dealer.