Inflation, Fed taper talks keep STI and Asian bourses lower; STI dips 0.44%

MOST Asian bourses - including Singapore's - continued to be held ransom by concerns over inflation and taper talks from the US Federal Reserve, and retreated on Friday.

The benchmark Straits Times Index (STI) dropped 13.96 points or 0.44 per cent to 3,151.04 points, with only four constituents managing to eke out gains and another four closing flat.

City Developments was at the bottom of the STI performance tally, losing 1.41 per cent to S$7.72, although the property heavyweight announced on Friday that it had applied for an initial public offering of a real estate investment trust (Reit), which could raise some £500 million (S$940 million) on the Singapore Exchange. However, it reiterated that there is no certainty that the listing will proceed.

OUE Commercial Reit, which had issued S$150 million worth of five-year notes at 3.95 per cent on June 2, was trading at S$0.395 or 1.28 per cent higher when market closed.

Catalist-listed CFM emerged as the most active stock with a trading volume of 134.8 million, and its shares closed 32.77 per cent higher at S$0.158. CFM is a manufacturer providing metal stamping services, design, fabrication and the sale of tool-and-die used for the production of stamped metal components.

Losers outpaced gainers 288 to 238 in the broad market, with 2.34 billion securities worth S$1.07 billion transacted.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

Other Asian bourses were generally down. Hong Kong's Hang Seng Index was 0.17 per cent lower at 28,918.10 points, while South Korea's Kospi Index dropped 0.23 per cent to 3,240.08 points.

The FTSE Bursa Malaysia Kuala Lumpur Composite slipped 0.76 per cent to 1,578.45 points. Japan's Nikkei 225 Index slid 0.40 per cent to 28,941.52 points.

The Shanghai Composite Index was up 0.21 per cent at 3,591.85 points though, along with Australia's S&P/ASX 200 Index which closed at 7,295.35 points or up 0.48 per cent.