Singapore shares slump amid heavy trading; STI down 0.9%

THE local stock market took a hit on Wednesday (May 31), alongside other markets in the region, as China’s latest manufacturing purchasing managers index slid again in May. 

The benchmark Straits Times Index (STI) slumped 0.9 per cent or 28.76 points to close at 3,158.80. 

Singapore Exchange data revealed heavy trading, with 2.7 billion securities worth about S$2.8 billion changing hands over the course of the trading day. Decliners far outpaced advancers 348 to 231.

It was a similarly bearish trading session across the rest of the region, with all stock markets ending the day lower. The Nikkei 225 lost 1.4 per cent; the Hang Seng Index slipped 1.9 per cent, and the Kospi fell 0.3 per cent. The Bursa and the ASX 200 lost 0.7 per cent and 1.6 per cent respectively. 

Stephen Innes, managing partner at SPI Asset Management, noted that Asia stocks and currencies “are getting crushed as disappointing factory activity in China is hammering sentiment across the region”.

“Now, we see a mad dash to the exits, proving that stocks are never too cheap to sell when sentiment turns rabid,” he said. “We think the turn in sentiment is getting compounded as foreign investors grow wary of regional debt levels.”

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OCBC was among the top gainers for the day, adding 0.4 per cent or S$0.05 to S$12.27. It was the only lender to end the day in the black; the other two were among the biggest losers for the day. 

DBS was the top decliner, falling 3.3 per cent or S$1.03 to S$30.30. UOB lost 0.4 per cent or S$0.11 to S$27.95. 

Singapore Airlines was among the top advancers. It was reported on Wednesday that the flagship carrier is investing in a number of initiatives to draw customers, as its competitors race to add capacity to capture pent-up demand for air travel. The stock rose 0.6 per cent or S$0.04 to close at S$6.41 on a cum-dividend basis.