Trading is expected to be lacklustre (ext: Edge)

Trading is expected to be lacklustre except for a few stocks on Aug 12 as investors' sentiment is expected to be dampened by the overnight fall on Wall Street.

On Wall Street, stocks fell after a prominent banking analyst warned the sector's fundamentals have yet to improve, and an unexpectedly large drop in wholesale inventories raised worries about an economic recovery.

The drop in US wholesale inventories in June, which was nearly double expectations, showed businesses remained sceptical about a return in demand.