DBS View

ST Index (2,364.97) - Our Index will likely to trend lower till the end of this
week. Meanwhile, we expect the Index to move below its support level of 2,345,
competing its 3rd and final corrective wave down, before a likely bottom-up reversal.
However, if our Index decides to reverse out early, it should turn up without
breaching its second support level and head towards its target of 2,450 over the
next 2 weeks. The downside momentum is likely to be driven by a mixed of various
sectors, especially in the multi-industry and manufacturing, with the exception
of certain stocks from the Technology, Telecommunication and Consumer sectors.
In the short-term, we advise investors to stay out of the market till the general
down cycle reverses. However, for risktakers, we would advise
them to buy certain Technology, Telecommunication and Consumer stocks on weakness
for the upside potential remains on these selective stocks. Our year-end
target for the Index stays at 2,560 levels.