Daily Markets Briefing: STI down 0.63%

Find out who the biggest losers were.

According to KGI Fraser, while the STI (-0.6%) started off on a positive mood, O&G and banking stocks continued to be sold down throughout the day, pulling the index below its 2700 support at closing and to its lowest levels in four years.

As oil prices continues to plunge to 12 year lows, the situation with Keppel Corp (-7%; HOLD TP $7.16) and Sembcorp Marine (-4%; SELL TP $2.07) deteriorated further on news that Sete Brasil, a major customer making up 40% of their order books, may be seeking bankruptcy protection at a meeting scheduled on 21 January, KGI Fraser said.

Here’s more from KGI Fraser:

Not all was doom and gloom as REITs saw some bargain hunting after the broad based sell down on Monday.

Among the biggest gainers in the REITs space were Mapletree Commercial Trust (+3%), Cache Logistics Trust (+2%), Keppel Reit (+2%) and Frasers Centrepoint Trust (+1%; BUY TP $2.83).

Other gainers were led by situational plays, notably Halcyon Agri (+9%) on news that it is to be acquired by China's Sinochem Group.

Given the sharp declines over the past week (STI -6% YTD), expect some bargain hunting and short covering in today's trading session after a positive handover from US (S&P +0.8%; DJIA +0.7%) and European markets (EURO STOXX 50 +1.2%; FTSE 100 +1%).