Singapore stocks open lower on Thursday; STI down 0.2%

SINGAPORE shares continued to sink on Thursday (Aug 3), as the global market tumbled after Fitch’s surprising downgrade of the US’ credit rating on Tuesday.

As at 9.01 am, the Straits Times Index (STI) had dropped 7.17 points or 0.2 per cent to 3,317.85. Across the broader market, losers outnumbered gainers 76 to 60 after 71.4 million securities worth S$69.7 million changed hands.

The most actively traded counter by volume was Seatrium , with its share price down S$0.001 or 0.7 per cent to S$0.135, after 20.4 million of its securities were transacted.

Other heavily traded counters included index stock Thai Beverage , with its share price unchanged at S$0.60 after 4.1 million of its securities changed hands.

Following a trading halt on Wednesday, units of CapitaLand Ascott Trust fell 7.1 per cent or S$0.08 to S$1.04, with S$4.7 million of its securities traded. 

Shares of Singtel fell further by 1.2 per cent, or S$0.03, to S$2.43 amid heavy volumes traded. 

The trio of local banks showed mixed results in early trade. DBS rose S$0.24 or 0.7 per cent to S$34.08. Before the market opened, Singapore’s largest lender posted a net profit of S$2.6 billion for the second quarter ended June, representing a 45 per cent year-on-year increase from S$1.8 billion.

UOB dropped S$0.17 or 0.6 per cent to S$29.75, and OCBC was down S$0.08 or 0.6 per cent to trade at S$13.11.

Wall Street stocks fell sharply on Wednesday, after Fitch stripped the US of its highest credit rating.

SEE ALSO

Stocks to watch: DBS, Singtel, Great Eastern, CapitaLand Ascott Trust, OUE, OUE C-Reit

The Dow Jones Industrial Average shed almost 350 points, or 1.0 per cent, to finish at 35,282.52.

The broad-based S&P 500 dropped 1.4 per cent to 4,513.39, and the tech-rich Nasdaq Composite Index tumbled 2.2 per cent to 13,973.45.

Europe shares also suffered broad-based losses as investors fled riskier assets after the downgrade of US credit rating.

The pan-European Stoxx 600 index fell 1.4 per cent to 460.84, touching its lowest level since Jul 18, and extending declines for the second straight day.