Mid Day Market Update

Singapore shares moving off lows at start of afternoon trade as gains for marine & offshore plays help offset some of the gloom on inflation jitters; STI down 0.4% at 3186.49 vs session low of 3153.75. Marine & offshore plays Keppel Corp. (BN4.SG), SembMarine (S51.SG), SembCorp (U96.SG) heading higher as investors bet high oil price will lead to strong demand for oil and gas E&P equipment. AmFraser senior VP of research Najeeb Jarhom says STI''s current pullback should not be as sharp as those seen earlier in year; "the market environment is more benign than in 1Q despite record oil prices and spate of natural calamities." Tips support for index at 3150-3160. Broad market volumes remain decent with losers outnumbering gainers 314 to 205