Singapore, Asia markets tumble tracking losses on Wall Street; STI down 1.3%

STOCKS in Singapore and the Asia-Pacific tumbled on Thursday, tracking steep declines overnight in Wall Street.

The benchmark Straits Times Index (STI) fell 1.3 per cent or 38.33 points to 2,920.30. Across the broader market, decliners outnumbered advancers 380 to 137, after 3.31 billion securities worth S$1.47 billion changed hands.

The three major US indices saw their worst sessions in three months on Wednesday, with declines of over 2 per cent each, as the US Federal Reserve offered a cautious economic outlook due to Covid-19.

"A confluence of the elevated prices and cautionary tone struck by the International Monetary Fund and Fed had weighed on markets midweek, seeing to a risk-off sentiment extending into the latter half of the week," said IG senior market strategist Pan Jingyi.

Nearly all the index counters ended Thursday in the red. Leading the decline was Sembcorp Industries, which fell 3.5 per cent to S$1.66.

Thai Beverage was the top performer and most active counter on the STI. It rose 2.5 per cent to 82 Singapore cents after over 49 million shares changed hands. Bloomberg reported on Thursday that the company is planning to lodge a filing to list its brewery unit on the Singapore Exchange as soon as next week.

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Keppel DC Reit was the only other STI gainer on Thursday, rising 1.4 per cent to S$2.95. It reported on Tuesday a 27.5 per cent rise in distribution per unit to 4.795 Singapore cents for its fiscal second half ended December.

Elsewhere in the Asia-Pacific, it was a sea of red across major indices. The Nikkei 225 in Japan fell by 1.5 per cent to 28,197.42, Hong Kong's Hang Seng Index lost 2.5 per cent to 28,550.77 and Australia's ASX 200 slid 1.9 per cent to 6,649.70.

Oanda senior market analyst for the Asia-Pacific, Jeffrey Halley, said the release of US gross domestic product data on Thursday evening is the next significant risk point for equity markets, "with an underwhelming number likely to extend the malaise". However, he added, things could change if positive vaccine data is released by Johnson & Johnson in the next two days.