Singapore stocks extend losses amid Omicron fears; STI falls 1.4%

THE Straits Times Index (STI) extended its losses on Monday amid uncertainties over the new Covid-19 variant, Omicron, ending 1.4 per cent or 45.69 points lower at 3,120.58.

Decliners outnumbered advancers 303 to 198, with 1.76 billion shares worth S$2.15 billion changing hands.

Across Asia, most markets closed lower amid uncertainty over Omicron, which was first detected in South Africa and has since been declared a variant of concern by the World Health Organization (WHO).

Japan's Nikkei 225 index fell 1.6 per cent, South Korea's Kospi fell 0.9 per cent and Hong Kong's Hang Seng Index fell 1 per cent. Meanwhile, Malaysia's Kuala Lumpur Composite Index (KLCI) edged down 0.1 per cent and Indonesia's Jakarta Composite Index (JCI) rose 0.7 per cent.

On the STI, Hongkong Land H78 was the top gainer, closing up 0.7 per cent or US$0.04 at US$5.56.

Meanwhile, aviation counters like Singapore Airlines C6L were hit hard, closing down 2.8 per cent or S$0.14 at S$4.91. SATS S58 was also down 2 per cent, or S$0.08 to close at S$3.90.

DBS Group Research analysts said in a flash note on Monday (Nov 29) that the aviation sector would likely remain negative under their worst-case scenario, where border reopenings could be pushed back by 6 to 9 months.

"If Omicron was to overtake Delta as the dominant variant, we would be negative on aviation in general, especially the airlines as international travel would remain highly restricted and the recent easing would have to be rolled back for an extended period," they said.

The trio of banks were also in the red, with DBS D05 falling 2.5 per cent or S$0.78 to close at S$30.79, while UOB U11 closed down 2.1 per cent or S$0.58 at S$26.53 and OCBC O39 closed at S$11.34, down 1.8 per cent or S$0.21.