The 1,600 level had been seen as a key psychological barrier but it gave way yesterday with the STI losing 34.41 points, or 2.11 per cent, to end at 1,594.94.

Only four of the index's 30 component stocks failed to avoid going into the red.

The relentless blood-letting has taken its toll on some of corporate Singapore's biggest guns, but that could present trading opportunities.

United Overseas Bank (UOB) shares hit a 52-week low yesterday - also its lowest since May 2003 - when it closed at $10.20, while City Developments and Singapore Press Holdings are near their 52-week lows.

Others have fallen dramatically off their highs. Shipping play Cosco Corp, for example, has plunged over 80 per cent from its 52-week high of $4.34 while Keppel Land and Golden Agri-Resources have come off over 70 per cent.

As macroeconomic conditions continue to deteriorate, there is little evidence that the global equities rout will be over soon.

With most economists expecting the Singapore economy to remain deep in recession for at least the next two quarters, some analysts see the STI going as low as 1,200 in the months to come.

Buying opportunities should abound at that level and tempt even the most shell-shocked investor to bring the wallet back out again.

If the STI does weaken to such a degree, it means the blue chips that comprise the index will be 20 per cent cheaper than today's already depressed levels. The STI is now halfway below the peak level of 3,248.75 reached in May last year.

Read the full story in today's edition of The Straits Times.