Singapore shares close weaker in line with falls in HK, Dow futures

THE Straits Times Index on Tuesday sank 44.74 points or 1.6 per cent to 2,778.77, its second successive drop after six consecutive rises that saw it gain 234 points. Turnover amounted to 2.6 billion units worth S$1.4 billion for an average of S$0.54 per unit, and excluding warrants there were 128 rises versus 304 falls in the broad market.

Weakness in the Dow futures was cited as a likely reason for the index's drop here, though steep falls in Japan and Hong Kong also probably played a part. At 5pm, the Dow futures was down 115 points.

Offshore and marine (O&M) stocks, which have enjoyed heavy play in recent days, had a mainly weak session. One of the best performers, Technics Oil and Gas, ended S$0.025 down at S$0.245 on volume of 39 million, whilst Keppel Corp plunged S$0.43 or 7 per cent to S$5.77 on volume of 17 million after US-listed Transocean Ltd announced it has agreed to defer delivery of five jackup rigs from Keppel until 2020.

In the second line, shares of healthy lifestyle firm OSIM International jumped S$0.15 to S$1.375 on volume of 15.2 million following news of a takeover-cum-privatisation offer from chairman and chief excutive Ron Sim at S$1.32 per share. RHB said the offer is reasonable in light of the weak equity market and poor sales outlook in OSIM's key markets over the next 12 months. "However, longer-term shareholders may probably not be keen to sell, as the fundamental intrinsic value of the company is likely to be higher than the offer price," said the broker.