Singapore shares start week lower; STI down 0.2%

SINGAPORE shares were not spared the red ink inflicted on most regional bourses on Monday (Jul 8).

The Straits Times Index (STI) closed 6.34 points or 0.2 per cent lower at 3,404.47, with seven counters up, 14 down and the remaining of the 30 counters unchanged.

Several regional bourses slid, with the Hang Seng Index being the worst hit as technology and real estate counters drove a 1.6 per cent drop in the Hong Kong’s blue-chip gauge.

Yeo Hui Shi, assistant manager of the research and portfolio management team at FSMOne.com, noted that Singapore’s performance largely aligned with the broader Asian market as investors await US Federal Reserve chair Jerome Powell’s address before Congress on Tuesday and Wednesday.

Data released last Friday, said Yeo, showed that while the US labour market is cooling, it remains strong and could still contribute to inflationary pressures. Employers hired more workers than expected in June, although the number was lower than in May.

“Fed policymakers have emphasised that it will not be appropriate to reduce rates until they gain greater confidence that inflation is moving sustainably toward 2 per cent,” she pointed out.

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Singapore stocks decline at Monday’s open; STI down 0.2%

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Decliners beat gainers in the broader market 307 to 267 in Singapore, with 974.5 million securities valued at S$951.9 million in total transacted.

Inflight caterer and ground handler Sats was a whisker from its 52-week high at its closing price of S$2.98, after surging 1 per cent or S$0.03.

Singtel was the most active counter with a turnover of some 42.4 million shares, with the telecommunications company’s share price closing S$0.01 or 0.4 per cent lower at S$2.84.