STI tumbled 1.01% as risk aversion mounts on economic fears

SINGAPORE shares fell on Friday (Dec 16) as several factors ranging from a wave of central banks’ rate hikes, weak domestic macro data and falls in Wall Street and European exchanges did a number on trading sentiments.

The key Straits Times Index tumbled 32.94 points or 1.01 per cent to 3,240.81 to cap an eventful roller-coaster week that saw worries over the global economy ratchet up on the back of policy makers’ moves to combat inflation which would hinder growth.

Latest data out of Singapore that its non-oil domestic exports (NODX) posted sharper-than- expected falls in November also offered no comfort. Week-on-week, the STI fell 5.16 points or 0.015 per cent.