Singapore stocks close lower on Tuesday; STI down 1.5%

THE Straits Times Index (STI) ended down 47.06 points or 1.5 per cent to 3,055.05 points on Tuesday, amid jitters over weaker-than-expected economic data from China.

Decliners outnumbered advancers 292 to 213 for the day, with 2.21 billion shares worth S$2.09 billion changing hands.

Sentiment was dented as China's official Purchasing Managers' Indexes (PMIs) softened further in August. Manufacturing PMI clung on to expansionary territory at 50.1, while non-manufacturing PMI unexpectedly fell into contraction - defined as a reading below 50 - for the first time since March 2020.

"Headwinds from tightening regulation and China's zero tolerance to Covid-19 infections will further weaken the outlook for domestic demand," said UOB economist Ho Woei Chen. "Monetary and fiscal policy support will likely be stepped up following the weaker than expected PMIs."

Meanwhile, investors were also cautious on some larger capitalisation counters, as changes to the MSCI Equity Indexes in its quarterly index review will be implemented at the close on Tuesday.

Venture Corporation was the only advancer among the STI constituents, gaining 0.4 per cent or S$0.07 to S$19.16.

At the bottom of the STI's performance table on Tuesday were Jardine Matheson Holdings (JHM), Genting Singapore and Mapletree Commercial Trust (MCT). JMH closed 3.5 per cent or US$1.98 lower at US$54.32, Genting Singapore was down 2.6 per cent or 2 Singapore cents to 76.5 cents, and MCT fell 2.4 per cent or S$0.05 to S$2.03.

The trio of local banks also closed lower on Tuesday. DBS was down 1.4 per cent or S$0.43 to S$29.97, OCBC fell 1.8 per cent or S$0.21 to S$11.43, and UOB ended 0.9 per cent or S$0.24 lower at S$25.58.