Singapore shares lacklustre save some medical-related ones

SINGAPORE shares continued to drift on Tuesday even as the Nasdaq defied gravity. Geopolitical tensions between the US and China, however, continue to weigh on sentiment.

Margaret Yang, DailyFX strategist, said that while the overall trend for the Nasdaq remains bullish, the fear gauge or VIX has spiked above 30 - its highest level seen in one and a half months.

"This suggests that the 5-month long stock market rally may have run out of steam and is due for a technical pullback," Ms Yang warned.

A technical pullback could see the Nasdaq 100 index test the immediate support level at 12,000. As for the Dow Jones Industrial Average, its immediate support and resistance level are pegged at 27,900 and 29,600, respectively.

In Singapore, the market was generally lacklustre. The Straits Times Index (STI) opened at 2,521.81. It eventually closed off its intraday high of 2,544.00, at 2,538.55, up 6.04 points, or 0.24 per cent, from Monday's close. There were 1.80 billion securities worth S$903.25 million traded, with 214 gainers to 215 losers.

Brokers said medical-related stocks such as Medtecs International, which makes hospital apparel and bandages, among others, drew some interest. The stock closed at S$1.55. More than 14 million shares, worth S$22.3 million, changed hands. QT Vascular, which is involved in providing solutions for minimally invasive treatment of complex vascular diseases, was the second most actively traded stock, with more than 142 million shares traded. The stock ended at S$0.012, down 0.2 cents, or 14.29 per cent. Malaysian glove maker, Top Glove, was among advancers. The stock ended at S$8.66, up 12 cents, or 1.41 per cent.

Venture rode on the tailwind of the US tech rally, climbing 11 cents to end at S$19.96. Property counters including City Developments, Hotel Royal and UOL benefited from the cut in development charge rates, with the biggest change for hotels and commercial properties.