Singapore shares extend losses on regional declines; STI down 0.9%

SINGAPORE shares fell for the second consecutive day on Wednesday (Jan 3), mirroring regional losses and an overnight decline on Wall Street.

The benchmark Straits Times Index (STI) lost 0.9 per cent or 30.51 points to close at 3,199.44. Across the broader market, losers outnumbered gainers 333 to 268, after 1.2 billion securities worth S$888.6 million were traded.

Shares of Seatrium ended at the bottom of the index performance table after falling 4.2 per cent to close at S$0.115. The counter was the most actively traded by volume, with some 222 million shares worth S$26 million changing hands.

The local banks also ended in the red. OCBC lost 0.8 per cent, UOB slipped 1 per cent, and DBS fell 1.1 per cent.

Just three STI counters closed higher on Wednesday, including UOL , which rose 0.2 per cent, and Keppel Corp , which climbed 0.6 per cent. Frasers Logistics & Commercial Trust was the top index gainer, rising 0.9 per cent to S$1.15.

Elsewhere in the region, shares in South Korea led the decliners as the Kospi sank 2.3 per cent. Other key indices in Taiwan, Australia and Hong Kong were also in the red, falling between 0.8 and 1.6 per cent. The weak performance came after overnight losses in the US, where the S&P 500 and Nasdaq Composite fell 0.6 per cent and 1.6 per cent, respectively.

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Stephen Innes, managing partner at SPI Asset Management, noted that tech stocks declined after Barclays analysts downgraded their rating on Apple amid concerns over demand for new iPhones. He added that the S&P 500 has been on its longest winning streak since 2004, with bets on “fast and furious interest rate cuts in 2024” being a critical factor buoying stocks in recent weeks.

“Economic updates expected later in the week, mainly the December jobs report due on Friday, could further challenge the ongoing rally,” Innes said.