Singapore and regional markets extend losses; STI down 1.08%

ASIAN stocks extended their losses on Thursday, bucking the trend of the overnight rally on Wall Street.

The Nikkei 225 Index fell 0.88 per cent or 248.92 points to 28,118.03, while the benchmark Kospi closed 0.99 per cent or 32.66 points lower at 3,252.68. The Hang Seng Index also slipped 2.89 per cent or 807.49 points to 27,153.13.

Locally, the benchmark *STI (STI) fell 1.08 per cent or 34.01 points to end at 3,107.59.

Decliners outnumbered advancers 411 to 143 for the day, with 1.7 billion securities worth S$1.48 billion changing hands.

Among the STI constituents, J36 was the sole gainer for the day. It edged up 0.63 per cent or US$0.41 to US$65.17.

Meanwhile, BS6 slumped to the bottom of the index, falling 2.78 per cent or S$0.04 to S$1.40. F34and C09 were also among the day's worst performers; both counters fell 2.43 per cent to end at S$4.42 and S$6.84, respectively.

In a note on Wednesday, CGS-CIMB analyst Lim Siew Khee said that in anticipation of Singapore's Q2 2021 results season starting July 19, "the additional restrictions imposed from May 16 to June 13 (Phase 2 Heightened Alert) could see the earnings per share (EPS) upgrade momentum taper... after three consecutive quarters of upgrade".

She added: "Notably, banks, which typically drive the market EPS, may be more conservative in their assessment of asset quality amid the resurgence of Covid-19 cases in the region, with the risk of loan moratoriums being introduced."