Singapore stocks track regional declines; STI down 1.4%

THE Straits Times Index (STI) shed 1.4 per cent or 45.13 points to close at 3,181.97 on Monday (Sep 26), tracking regional declines as markets continue to reel from signs of further economic pain ahead.

In the broader market, losers beat gainers 413 to 194, with 1.56 billion securities worth S$1.70 billion traded.

IG market strategist Yeap Jun Rong noted that in addition to the declines posted by the various indices in the United States, US short-term rates ticked higher as well.

“The inversion of the yield curve at a new low since 1981 reflects increased risks of recession, which may bode the question of whether economically sensitive sectors could bear the brunt of the next leg of sell-off if economic conditions were to reveal further signs of weakness over the coming months,” he said.

Across the region, major market indices were in the red. South Korea’s Kospi composite index declined 3 per cent, Japan’s Nikkei 225 fell 2.7 per cent, both the Jakarta composite index and the Kuala Lumpur composite index shed 0.7 per cent while Hong Kong’s Hang Seng index edged down 0.4 per cent.

Inflight caterer and ground handler Sats : S58 0% and liquor company Emperador : EMI 0% were the only counters on the STI to remain in the black on Monday. Sats gained 1 per cent or S$0.04 to close at S$3.90, while Emperador gained 1 per cent or S$0.005 to close at S$0.50.

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On the other hand, Yangzijiang Shipbuilding : BS6 0% was at the bottom of the table, falling by 10.5 per cent or S$0.13 to close at S$1.11.

This comes after heavy trading in the counter prompted a query from the Singapore Exchange Regulation last Friday.

In response, Yangzijiang said media reports in connection to its Sep 8 announcement about a new licence agreement that would allow it to start constructing large liquified natural gas (LNG) vessels could have led to the earlier rise in its share price.