Shares took a big hit yesterday after relief from last week's global fiscal support measures faded amid uncertainty over the duration of the pandemic.
Before markets opened, the Monetary Authority of Singapore (MAS) said it flattened the pace of the Singapore dollar's appreciation.
The MAS moves follow last Thursday's $48.4 billion support package from the Government and come as the country is facing its first full-year recession since 2001, due to economic fallout from Covid-19.
The gloomy mood sent the Straits Times Index (STI) down more than 2 per cent in the early session, with sell-offs continuing in the afternoon before the benchmark finished 112.52 points or 4.5 per cent lower at 2,416.24. All 30 of the STI's counters closed in the red.
Elsewhere, equity benchmarks were mostly lower, tracking oil prices, which fell to 18-year lows.
China, Hong Kong, Japan, Malaysia, South Korea and Taiwan fell, while Australia bucked the trend. The ASX 200 had its biggest single-day jump on record, advancing 339 points or 7 per cent to 5,181.4 after Canberra committed A$130 billion (S$114 billion) to supporting the economy.
Equity markets are likely to stay volatile, at least until the Covid-19 situation stabilises across the globe.
Oanda Asia-Pacific senior market analyst Jeffrey Halley said: "Until the world starts making evidential progress in the fight against Covid-19, and by that, I mean the United States and Europe, pricing in a V-shaped recovery in asset markets remains delusional hype at best, or reckless stupidity at worst."
The banks fell. UOB dived 5 per cent to $19.21, DBS dropped 4.4 per cent to $18.30 and OCBC also lost 4.4 per cent, closing at $8.52.
Singapore Airlines continued to fall after announcing a massive cash call last Thursday. It closed 4.6 per cent lower at $5.80.
ComfortDelGro slid 4.5 per cent to $1.48. The transport firm said it is spending $80 million to extend rental relief for taxi drivers until Sept 30 due to the worsening crisis.
This will send its taxi business into the red for this year, it added.
Wilmar International fell 4.7 per cent to $3.07 as UOB Kay Hian lowered its earnings forecasts for this year, citing "weaker demand for the tropical oil segment, in view of the drop in crude oil prices and demand disruption at major markets such as India and Europe".
That said, it does not expect a change to Wilmar's plans to list its Chinese operations in Shenzhen.
Trading volume was 1.23 billion shares worth $1.55 billion, with losers outpacing gainers 321 to 127.
