Singapore stocks fall at open on Phase 2 reversion; STI down 0.8%

SINGAPORE shares took a beating on Wednesday morning, after the government announced tighter restrictions in view of rising Covid-19 community cases. 

On Tuesday, Singapore's Covid-19 taskforce announced stricter limits on social gatherings and employees at the workplace, a reduction of activity and event sizes, gym closures, as well as stricter border controls.

Investor sentiment was also weighed down by a weak showing on Wall Street overnight. 

Index counters and real estate investment trusts (Reits) were in a sea of red. The Straits Times Index (STI) slipped 0.8 per cent or 24.87 points to 3,154.26 as at 9.03am. 

Decliners outnumbered advancers 98 to 30, after 51.7 million securities worth S$79.1 million changed hands at 9.02am.

Ascendas Real Estate Investment Trust was the most actively traded counter by volume, with 5.6 million units traded as at 9.04am. The counter fell 4.8 per cent or S$0.15 to S$2.97 after the manager said the Reit is buying the remaining 75 per cent equity stake in a business park at one-north for about S$534.4 million.

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The trio of local banks were mixed in early trade. DBS was down 1.5 per cent or S$0.43 to S$28.97, UOB fell 1 per cent or S$0.27 to S$26.16, while OCBC gained 0.3 per cent or S$0.03 to S$12.25 as at 9.05am.

Over on Wall Street, markets closed mostly lower amid a tech stock slump after Treasury Secretary Janet Yellen warned that higher interest rates could be coming soon.

The Dow Jones Industrial Average edged up 0.1 per cent to 34,133.03, the broad-based S&P 500 fell 0.7 per cent to 4,164.66, while the tech-rich Nasdaq Composite Index closed 1.9 per cent lower at 13,633.50, its worst performance since March 24.

Over in Europe, shares ended lower on Tuesday, mirroring the poor performance of technology stocks on Wall Street. The pan-European Stoxx 600 index shed 1.4 per cent to 433.65 at market close.

Elsewhere in Asia, markets in Tokyo, South Korea and mainland China are closed for a public holiday on Wednesday.