Singapore shares fall on Monday; STI slips 1.4%

SINGAPORE stocks fell on Monday (Aug 14), tracking losses in regional indices. 

The benchmark Straits Times Index (STI) slumped 1.4 per cent to 3,247.7 as most counters on the index fell.

Across the broader market, losers outnumbered gainers 418 to 201 after 1.1 billion securities worth S$1 billion changed hands. 

Regional indices tumbled on Monday, led by Hong Kong’s Hang Seng Index, which fell 1.6 per cent. South Korea’s Kospi Composite Index was down 0.8 per cent, while the Nikkei 225 dipped 1.3 per cent. The FTSE Bursa Malaysia KLCI shed 0.1 per cent. 

Back at home, Wilmar International was the STI’s biggest loser, falling 3.9 per cent or S$0.15 to end the day at S$3.66. 

The agribusiness group on Friday posted a first-half net profit of US$551 million, down 52.7 per cent year on year despite higher sales volume.

ST Engineering and Yangzijiang Shipbuilding were the only gainers on the STI.

ST Engineering was up 1.9 per cent or S$0.07 to S$3.85, after posting a slight rise in first-half earnings to S$280.6 million on Friday. It said it expects a better performance in the second half of the year as its Urban Solutions and Satcom arm is expected to enjoy cash savings of up to S$60 million over the next five years. 

Yangzijiang Shipbuilding, meanwhile, ticked up 0.6 per cent or S$0.01 to S$1.69.

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It was a sea of red for the three local banks. OCBC ended at S$12.60 after a 3.7 per cent slide, UOB shares declined 0.7 per cent to S$28.78, and DBS closed at S$33.56, down 0.2 per cent. 

IG market strategist Yeap Jun Rong said: “Current rate expectations from the (US Federal Reserve’s) Fed Funds futures pricing remained firm that the Fed’s tightening cycle has already reached its end, with potential rate cuts in May next year.”

The market will next focus on Japan’s second-quarter gross domestic product release on Tuesday, as well as minutes from the Reserve Bank of Australia and some economic data out of China, he added.