STI Off 1.8%; May Test 2745 In Weeks - Kim Eng

[Dow Jones] Sentiment in Singapore stock market remains edgy, mirroring risk aversion across Asian bourses, given uncertainty over impact of U.S. housing, credit troubles. STI down 1.8% at 2851.42 midday, after briefly breaching 2850 for 1st time since March 20, hitting 2843.59 intraday low; psychological support eyed at 2830 (March 19 intraday low). "We now accord a high probability that 2745 will be tested in the coming weeks or months as the final defense line at 2946 (61.8% Fibonacci level between March low of 2745 and May high of 3269) has already given way two weeks back," says Kim Eng Securities; expects STI to test 2745 if DJIA corrects to 9500 (DJIA closed down 0.4% at 11055.19 overnight). All 19 FTSE ST sub-indexes in red, with All Share Index down 1.7% at 717.38. Overall volume thin, with 367 decliners vs 99 gainers.