Singapore shares close Thursday lower amid global gloom; STI down 1.2%

SINGAPORE shares ended Thursday’s (Oct 19) trading session lower, reflecting a similarly downcast mood seen in key major markets within the region as well as in the US.

The Straits Times Index fell 1.2 per cent or 37.02 points to close at 3,099.60 after 1.7 billion securities worth S$1.2 billion were traded. Across the broader market, decliners outpaced advancers 405 to 219.

Regionally, key markets were pulled into negative territory following a sea of losses in Wall Street a day earlier. The Kospi closed down 1.9 per cent to 2,415.80; Australia’s ASX 200 finished 1.4 per cent lower at 6,981.60 and the Nikkei 225 fell 1.9 per cent to 31,430.62.

The biggest loser of all was Hong Kong’s Hang Seng Index, which dropped 2.5 per cent at the close to finish at 17,295.89. The index was already down in early trade; and IG market strategist Yeap Jun Rong believes the unresolved risks in the property sector may have some part to play, given concerns over a potential default for troubled Chinese developer Country Garden.

“Despite some promising signs of policy success seeping into China’s economic data yesterday, Chinese equities failed to move higher with the Hang Seng heading back towards its early-October low,” he said.

Another surge in Treasury yields, lingering geopolitical tension in the Middle East and higher oil prices also seemed to dampen appetite in risk-taking for now, Yeap added.

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On the local bourse, the biggest loser was once again Jardine Matheson, which shed 2.3 per cent, or US$0.96 to US$40.90.

Counters which had heavy trading over the trading day include Seatrium, which lost 3.3 per cent, or S$0.004 to S$0.117; Yangzijiang Shipbuilding, which fell 4.6 per cent, or S$0.07 to S$1.45; and Thai Beverage. The beverage manufacturer lost 0.9 per cent, or S$0.005 to S$0.54.

All three Singapore banks also ended lower. DBS slipped 0.5 per cent to S$33.17, OCBC fell 0.9 per cent to S$12.83 and UOB sank 0.8 per cent to S$27.88.