Panic sell off but market sentiment still positive!

On 28/Apr, Singapore shares ended lower Wednesday as concerns regarding sovereign debt problems may broaden in Europe hit financial and resource stocks across the board.

STI ended 59.64 points (2%) lower at 2932.04 points with LOW VOL of 1.7 billion shares traded compared with 1.76 billion Tuesday. In the broader market, loser outnumbered gainer 469 to 97. Though the SELL DOWN was broad-based with STI closed at 2% lower but the LOW VOL indicated that the selling pressure is not great due to the continued high expectation of strong local earnings ahead.

"I suspect the major global economic powers will not let problems with (the affected Eurozone nations) destroy the fragile economic recovery that has been created," NRA Capital chairman Kevin Scully said

Today India's Bharti Airtel Ltd announced 8.2% fall in net profit for the fourth quarter caused by cut-throat competition in the world's fastest growing telecommunications market.

This news affected Singapore Telecommunications Ltd which owns about 32% of Bharti Airtel to close at $3.01 (2.6%) lower with HIGH VOL of 28.3 million shares traded. Singtel has been losing momentum since reaching 6-month high of S$3.29 last month partly due to concerns over prospects for associates such as India's Bharti, which faces stiff competition in its home market.

Important Resistance of Singtel: $3.08

Immediate Support of Singtel: $2.96

RSI: In bearish zone of 33%