Singapore stocks close lower as weak economic data weighs on sentiment; STI down 0.6%
Yong Jun Yuan
THE Straits Times Index (STI) fell 0.6 per cent or 18.39 points to 3,185.38 on Wednesday (Jul 5), as investors mulled over weak economic data from Singapore and China.
Across the broader market, losers beat winners 288 to 228, after 1.1 billion securities worth S$760.6 million changed hands.
On Wednesday, Singapore posted retail sales growth of 1.8 per cent year on year in May, down from the 3.7 per cent growth that was recorded in April. Month on month, retail sales fell 0.2 per cent, reversing a 0.5 per cent gain from a month earlier.
Meanwhile in China, its headline services purchasing manager’s index – the Caixin China General Services Business Activity Index – fell to 53.9 in June, from 57.1 in May. A figure above 50 indicates expansion in the services sector.
SPI Asset Management managing partner Stephen Innes said that Chinese policymakers are unlikely to sit idle, and will likely “redouble policy efforts” to support domestic demand and boost confidence.
“Without policy support, there’s a risk that weakening growth expectations could become self-fulfilling,” he said.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Regional markets closed out the day in the red. Japan’s Nikkei 225 fell 0.3 per cent, Hong Kong’s Hang Seng Index declined 1.6 per cent, while South Korea’s Kospi ended 0.6 per cent lower.
On the STI, DFI Retail Group was the worst performer, falling 3 per cent or US$0.08 to US$2.59.
Yangzijiang Shipbuilding was at the top of the table, gaining 2.1 per cent or S$0.03 to S$1.47.
The trio of local banks ended in the red. OCBC shed 1 per cent or S$0.12 to S$12.23, DBS fell 0.7 per cent or S$0.21 to S$31.21, while UOB was down 0.3 per cent or S$0.09 at S$27.83.
Copyright SPH Media. All rights reserved.
