STI falls 2.5% in single largest decline in a year

THE Straits Times Index (STI) saw its largest single-day decline in a year on Tuesday (Nov 30), falling 2.5 per cent or 79.29 points lower at 3,041.29.

Decliners outnumbered advancers 338 to 172, with 3.22 billion shares worth S$3.89 billion changing hands.

Most Asian markets were in the red as well, as uncertainty remained over the impact that Covid-19 variant Omicron could have on economies worldwide.

Japan's Nikkei 225 index fell 1.6 per cent, South Korea's Kospi tumbled 2.4 per cent and Hong Kong's Hang Seng Index fell 1.6 per cent. Meanwhile, Malaysia's Kuala Lumpur Composite Index was up 0.2 per cent and Indonesia's Jakarta Composite Index fell 1.1 per cent.

IG market strategist Yeap Jun Rong noted that Moderna chief executive officer Stephane Bancel's comments that existing vaccines could be less effective against Omicron, coupled with news of Japan's first Omicron infection, could have spooked markets.

"Overall sentiments may seem weighed for now, considering that slower vaccination rate and more limited healthcare capacity in the region may seem to bring about higher economic risks and potentially puts further reopening plans on hold," he said.

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In Singapore, all but 2 counters on the STI fell on Tuesday. City Developments (CDL) C09 : C09 0%rose 0.3 per cent or S$0.02 to S$7.02, while UOL rose 0.2 per cent or S$0.01 to S$6.88.

ComfortDelGro C52 : C52 0%was at the bottom of the table, falling 4.2 per cent or S$0.06 to close at S$1.37.

Singtel Z74 : Z74 0%was the most heavily traded STI counter by volume with 119.4 million shares worth S$283.5 million changing hands. Its shares closed down 2.1 per cent or S$0.05 at S$2.36.

The trio of banks fell deeper into the red. DBS D05 closed down 3 per cent or S$0.92 to close at S$29.87; while OCBC O39 declined 3.2 per cent or S$0.36 to close at S$10.98; and UOB U11 cl : U11 0%osed down 4 per cent or S$1.06 to close at S$25.47.