Market Outlook

The STI was one of the worst performers in the region as not even a
1.45% rise in the DOW overnight could prop up sentiment. The day,
however, had started off on a positive note as it opened up at 3,092
which reflected a 1.7% gain from the day before. Unfortunately, that was
to be almost the intraday high for the whole trading session as
shortists began selling into the market thereafter, not too dissimilar
to the trading pattern seen on Monday save for the smaller trading
range. By the end of the day, not even a positive lead given from the
Hong Kong market could inspire the local traders as the STI finished
essentially flat at 3,049.90 that was near its intraday low. Losers
almost matched gainers 314 to 355 on the scoreboard with 1.3bn shares
that were worth some $1.41bn changing hands. All eyes are now on the
Federal Reserve meeting that ends on 30 Jan with the market expecting
anything from a 25 to 75 basis point cut while the Fed futures signal
for a 50 basis point reduction.

Media Highlights
- Singapore's SWFs make global inroads
- KepLand revenue, profit hit record
- CIT distributable income for Q4 surges 59%
- Less rosy outlook for Asian airlines
- SIAEC Q3 net profit dips 3.1% to $53.6m
- SGX AsiaClear's trade values top US$4.7b
- New business line from Creative in March
- Fireworks and magic at OCBC bash

Economic Highlights
- U.S. Economy: Durable Orders Gain, Home Prices Fall
- Fed May Cut Rate to Below Inflation, Risking New Asset Bubbles