Singapore stocks fall on Friday amid lower GDP growth, forecast; STI down 0.9%

SINGAPORE stocks ended lower on Friday (Aug 11), after the Republic revised down its gross domestic product (GDP) growth for the second quarter, and narrowed its full-year growth forecast for 2023.

The benchmark Straits Times Index (STI) fell 0.9 per cent or 28.65 points to 3,294.28, after 1.1 billion securities worth S$1 billion changed hands. Losers outnumbered gainers 319 to 263.

For the week, the STI was down 0.3 per cent.

Singapore’s official full-year growth forecast for 2023 has been narrowed to a range of 0.5 per cent to 1.5 per cent, down from 0.5 per cent to 2.5 per cent, as the external demand outlook for the rest of the year remains weak.

This comes as GDP growth for the Q2 was revised downwards to 0.5 per cent on the year, from the advance estimate of 0.7 per cent.

Stephen Innes, managing partner at SPI Asset Management, said Singapore’s GDP growth has fallen below expectations, indicating signs of an economic slowdown.

Asian equity markets are also experiencing a slight wobble after the rally on Wall Street sputtered towards the end of the session, he noted.

“Furthermore, some major Chinese housebuilders’ concerns have further dampened sentiment,” he added.

Regional indices were largely in the red on Friday. The Hang Seng Index fell 0.9 per cent, the Kospi Composite Index lost 0.4 per cent, and the FTSE Bursa Malaysia KLCI Index slid 0.1 per cent; while the Nikkei 225 gained 0.8 per cent.

SEE ALSO

Singapore stocks open Friday lower after revised growth forecast; STI down 0.2%

Recession unlikely in 2023 after Singapore reports slight growth in Q2: economists

Singapore’s full-year growth forecast narrows to 0.5-1.5%, Q2 growth revised down

On Friday, the top loser on the STI was UOL, which fell 2.9 per cent or S$0.20 to S$6.74.

The property and hospitality group posted a 63.6 per cent fall in first-half net profit to S$135 million, due to significantly lower attributable fair value gains on its investment properties.

Meanwhile, Genting Singapore was the top gainer on the benchmark index, rising 3.8 per cent or S$0.035 to S$0.955.

The integrated resorts operator posted a first-half net profit of S$276.7 million, more than three times than the earnings from the same period a year ago, due to a higher number of foreign-visitor arrivals into Singapore.

The trio of local banks ended lower on Friday. DBS lost 1.8 per cent or S$0.61 to S$33.62, OCBC fell 1.3 per cent or S$0.17 to S$13.08, while UOB declined 0.7 per cent or S$0.20 to S$28.98.