Singapore stocks end 0.49% lower

Singapore shares closed 0.49 percent lower on Wednesday, as investors waited for clarity on the Federal Reserve's next policy step. Investors are hoping that Federal Reserve Chairman Bernanke will soothe market jitters about a possible scaling back of the bank's 85 billion U.S. dollars monthly bond-purchase program. The quantitative easing policy had helped fuel a global rally in stock markets and recent talk of a pullback in stimulus has knocked major indexes off their highs. CIMB Research said "we expect prices to bounce back to retest the 3,211 points and 3,311 points levels and prices are now within this range." SIAS Research said "we could see the index consolidating around current levels with the immediate support established at 3,200 points and resistance at 3,250 points." Phillip Securities Research said "the Straits Times Index might see an anticipatory but limited bounce-up, with near-term resistance ahead at 3,235 points. The near-term support is pegged at 3,200 points and 3,100 points." DBS Group Research said "we see the index's current rebound shifting to a sideway trend before gradually working higher again in the second half. The recent low at 3,100 points looks to have ended the correction and any pullback going forward should be a higher low." Singapore's benchmark Straits Times Index dropped 15.76 points to 3,213.79 points. Trading volume was 1.85 billion shares worth 1. 25 billion Singapore dollars. Decliners outnumbered advancers 260 to 164, while 519 stocks did not move. Keppel Land dropped 0.6 percent to 3.55 Singapore dollars. It said it had acquired a residential site in Shanghai's Sheshan area for 1.3 billion Chinese yuan to develop around 200 landed homes. CapitaLand fell 0.6 percent to 3.25 Singapore dollars. The property developer has acquired a 70 percent stake in Guang Chuan Property for 1.95 billion Chinese yuan. The Chinese company owns two plots of land in Hanzhonglu, Zhabei District, Shanghai. Among top gainers, Jardine Cycle and Carriage rose 0.7 percent to 43.50 Singapore dollars, while UOB became one of the top losers by falling 1.1 percent to 20.33 Singapore dollars. (1 U.S. dollar equals 6.13 Chinese yuan and 1.26 Singapore dollars)