Singapore shares fall 0.96% on lingering concerns over global economy, rising Covid infections

SINGAPORE shares closed lower on Monday, taking a cue from the Wall Street's broad-based losses last Friday, on lingering concerns over the state of the global economy amid rising Delta virus cases.

The key Straits Times Index retreated 29.50 points or 0.96 per cent to 3,041.73 as trading sentiments were also weighed down by the fallout involving China Evergrande Group. The property developer's debt crisis has also raised worries over contagion risks and doubts over the health of the world's second largest economy (China).

Financial markets in China, Japan, South Korea and Taiwan were closed on Monday for local holidays.

Key gauges in Hong Kong and Australia tumbled 3.3 per cent and 2.10 per cent respectively while Malaysia finished the day 1.3 per cent lower.

The losses across the region came ahead of the US Federal Reserve meeting this week, where policymakers are expected to move closer to the point of tapering and signal a hawkish shift in rate hike expectations in the dot plot.

"Ahead this week, one may look towards a series of central bank decisions in the likes of Indonesia, Japan, US, UK and the Philippines. On the economic front, a series of flash PMI figures may provide further clarity on the economic outlook ahead, in light of ongoing supply chain issues, elevated input costs and Covid-19 risks," remarked IG market strategist Yeap Jun Rong.

Turnover in the local bourse saw some 1.94 billion units worth S$1.52 billion traded. Losers outpaced gainers with 403 counters down and 161, up.

PH0 was the day's top traded with 91.5 million shares worth S$6.14 million. The counter slipped 0.8 Singapore cent or some 11 per cent to 6.5 Singapore cents. The property developer said it has yet to receive a US$60 million payment for the sale of its Malaysian unit Gold Mart. This deal was approved by shareholders in November last year and its completion date fell due last Friday following multiple extensions.

Ailing offshore and marine giant S51 is all set for a much-needed shot in the arm after it announced last Friday that its S$1.5 billion rights issue was oversubscribed. It turned up as the day's second most actively traded with 87 million shares worth S$7.22 million changing hands. The stock fell 0.2 Singapore cent or 2.4 per cent to 8.2 Singapore cents.

9CI , part of the newly restructured CapitaLand Group, made its debut on the Singapore Exchange mainboard and closed at S$2.95. With a market capitalisation of S$15 billion, CapitaLand Investment drew a turnover of more than S$75 million on Monday, twice the daily average of S$37 million chalked up by CapitaLand over this year to Sept 9, remarked SGX market strategist Geoff Howie.

BLR fell to a year's low of 11.8 Singapore cents after it lost 6.8 Singapore cents or nearly 37 per cent. The group said last week that its board was assessing whether to go ahead with its proposed investment in the Gaoyi domestic wastewater treatment project. It has until next March to make up its mind on the matter.