STOCKS NEWS SINGAPORE-Index headed for biggest daily drop in a year

Last Updated: Thu, Jun 20, 2013 08:02 hrs

Singapore shares were headed for their biggest one-day decline in more than a year, tracking weaker global markets after Federal Reserve chairman Ben Bernanke said the central bank would start to reduce its stimulus measures later this year.

The benchmark Straits Times Index dropped nearly 2 percent on Thursday. The broadest MSCI's index of Asia-Pacific shares outside Japan fell more than 3 percent in its sharpest daily slump since November 2011.

Share price of Medtecs International Corp Ltd, which produces medical products including face masks, surged 11 percent in a second straight day of rise to S$0.07, on expectation of higher sales of masks in the city-state hit by its worst air pollution in history.

In other stocks, ComfortDelGro Corporation Ltd fell 2.8 percent to S$1.76, but stayed off a six-month low of S$1.70 hit last week. Analysts at OCBC Investment Research saw it as a good entry point given its recent share stability and unchanged fundamentals.

"Domestic challenges aside, the group's overseas growth prospects, which have been its key growth driver, remain unchanged," the analysts wrote in a note, adding that the blow to share price from a recent partial stake sale by the Singapore Labour Foundation has tapered off.

OCBC upgraded the stock to "buy" with a target price of S$1.95.

More from Sify: