Singapore shares join global rout; STI dives 4.1%
MM2 Asia was one of the few stocks that bucked the trend to close higher – up 13.3 per cent or S$0.002 to S$0.017
SINGAPORE stocks had a steep sell-off on Monday (Aug 5) – a scene that was played out elsewhere in the Asia-Pacific, after the global financial markets were rocked by recession fears arising from last Friday’s dismal employment data in the United States.
The Straits Times Index (STI) was 4.1 per cent or 137.78 points lower at 3,243.67. The fall was led by Yangzijiang Shipbuilding’s 8 per cent, or S$0.20, plunge to S$2.30.
The banking trio, making up nearly 45 per cent of the 30-stock blue-chip barometer, also contributed to the STI’s steep decline.
DBS closed at S$33.27, 5.8 per cent or S$2.04 lower, followed by UOB ’s 5.5 per cent or S$1.75 slide to S$30.08. OCBC was down 5.3 per cent or S$0.78 to S$14.02.
Citi on Monday made a “sell” recommendation on DBS, OCBC and UOB. It suggested that investors should unwind their overweight positions as its economists expect 225-basis-point cuts by the Federal Reserve in 10 months, and see the recent data as the first signs of a US economy contraction.
MM2 Asia was one of the few stocks that bucked the trend to close higher – up 13.3 per cent or S$0.002 to S$0.017. This came after the entertainment and media firm announced that Osim massage chair founder Ron Sim’s V3 Group could become its single largest owner, following a proposed share placement of as much as S$40 million of new shares at S$0.017 per share.
Decliners beat gainers by a wide margin of 571 to 181 across the broader market, with 1.9 billion securities worth S$2.9 billion transacted.
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