Pandemic beneficiaries jump on stricter Covid-19 curbs, STI slides

Singapore

SINGAPORE stocks largely pulled back during the afternoon trade following news of stricter Covid-19 curbs and the potential delay of the Singapore-Hong Kong air travel bubble, save for pandemic beneficiaries.

The Straits Times Index (STI) slipped into negative territory, dropping to an intraday low of 3,024.66, down 3.2 per cent or 98.6 points.

It later closed 2.2 per cent or 68.24 points lower at S$3,055.02.

The Singapore Exchange (SGX) and Keppel DC Reit were the only STI counters spared from the sea of red, which saw even the three local banks dropping 2-4 per cent during afternoon trade.

Keppel DC Reit, a pure-play data centre real estate investment trust (Reit), closed 0.8 per cent or S$0.02 higher at S$2.58, while SGX closed 0.5 per cent or S$0.05 higher at S$10.11.

DBS ended the day 0.7 per cent or S$0.21 lower at S$29.29. UOB was down 2.8 per cent or S$0.72 to S$25.37, while OCBC lost 2.6 per cent or S$0.31 to S$11.72.

Supermarket operator Sheng Siong Group, a known beneficiary of the pandemic, surged to an intraday high of S$1.68 as at 1.37pm, up 12 per cent or S$0.18.

It later closed at S$1.66, up 10.7 per cent or S$0.16, with 57.4 million shares changing hands.

The bounce in share price came half an hour after Singapore's multi-ministry task force (MTF) announced tighter restrictions on food and beverage (F&B) operators.

Dining in at F&B establishments will no longer be allowed from May 16 to June 13.

Both indoor and outdoor F&B establishments, including hawker centres and food courts, will be able to offer only takeaway and delivery options.

Travel-related stocks tumbled during the afternoon trade after it was announced that the planned air travel bubble (ATB) between Singapore and Hong Kong that was due to start on May 26 may be delayed further as it is likely that the Republic would not be able to meet the criteria for the ATB to carry on.

Among aviation counters, SIA Engineering lost 6 per cent or S$0.13 to reach S$2.03 at the market close.

SATS was down 3.9 per cent or S$0.15 to S$3.69, while national carrier Singapore Airlines dropped 5.7 per cent or S$0.27 to S$4.50.

Integrated resort operator Genting Singapore, which owns Resorts World Sentosa, fell 3.1 per cent or 2.5 Singapore cents to 78.5 cents.

This was after the MTF said there would be capacity limits for meeting, incentive, conference and exhibition (MICE) events, attractions and live performances.

Meanwhile, transport operator ComfortDelGro ended the day at S$1.58, down 3.1 per cent or five Singapore cents.

On the other hand, some suppliers of gloves and personal protective equipment (PPE) saw an uptick in their shares.

Medtecs International, which manufactures PPE, gained 4.2 per cent or four Singapore cents to 98.5 cents

Glove makers were mixed. UG Healthcare was up 6 per cent or S$0.04 to S$0.71, Riverstone gained 0.7 per cent or S$0.01 to S$1.42, while Top Glove closed 1.2 per cent or S$0.02 lower at S$1.68.

READ MORE:

• Economists retain Singapore's full-year GDP forecast for now despite tighter Covid-19 rules
• Dining ban 'unfortunate' for newly opened F&B establishments
• Singapore unlikely to meet criteria to resume air travel with Hong Kong
• Capacity restrictions to deal heavy blow to events, attractions ahead of June holidays
• Property players fall back on digitalisation efforts in response to stricter safe distancing measures