Market Summary for Year 2011

Singapore shares ended lower Friday, capping a tumultuous year in which the benchmark Straits Times Index lost 17.0%, roughly in line with the rest of Asia.
The 30-share STI closed 1.0%, or 26.43 points, lower on the day, at 2,646.35. Market activity was low as most participants had already closed their books for the year amid lingering caution over the euro-zone sovereign debt situation. Volume was a mere 437 million shares, compared with 472 million Thursday. Gainers edged decliners 194 to 154.
Investors can now reflect on a volatile year for the local equities market. Unrest in North Africa in February led to heavy selling and the STI slid 5.3% in the month. The huge earthquake that hit Japan in March further shook investor confidence and wiped out the recovery from February's sell-down. But the biggest shock to the local market came in August. At the end of September, the STI was sitting pretty at 3,189.26 but the downgrade of the U.S. sovereign debt rating by Standard & Poor's triggered a global market meltdown. Singapore, with its open and export-dependant economy, wasn't spared. The STI fell off a cliff and when it hit the bottom, at a low of 2,521.95 on Oct. 5, it had fallen 21%. Since then, the market has been dogged by fears over a potential double-dip recession in the U.S. and a hard landing for China's economy, but most concern has centered around Europe's sovereign debt crisis. Heading into 2012, market-watchers say the issue looks set to drag on.
"In the new year, the market is expected to remain volatile in the short term, given global uncertainties, especially in Europe," said OCBC Bank in a note. DMG & Partners said it expects further market weakness in the first half of 2012, "due to the persistent euro zone debt problems." However the brokerage said the STI could rise in the second half of the year and reach a level of 3,022. It said this target is based on valuation of 1.31 times price-to-book, below Singapore's 15-year historical average of 1.65 times, which it said was "justified given the global uncertainties."
CapitaLand Ltd. was on of the day's biggest blue-chip decliners, down 1.8% at S$2.21. The developer's stock has plunged 40% in 2011, weighed by government policy measures in Singapore and China to cool rampant property markets.

From Poems' Broker Agent.

STI is in downtrend, how it will perform at 2012? Will it rebound at first quarter or remain flat? At the moment there is no indication;
currently a lots of stocks for Singapore market is in the oversold region.