S'pore shares fall amid concern over weak China economic data

SINGAPORE - The Straits Times Index (STI) ended down 47.06 points, or 1.5 per cent, to 3,055.05 points yesterday, 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 $2.09 billion changing hands.

Sentiment was dented as China's official purchasing managers' indexes (PMIs) softened further last month. 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 last year.

"Headwinds from tightening regulation and China's zero tolerance for 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 about some larger capitalisation counters, as changes to the MSCI equity indexes in the company's quarterly index review would be implemented at the close yesterday.

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

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

The three local banks also closed lower yesterday. DBS was down 1.4 per cent or 43 cents to $29.97, OCBC Bank fell 1.8 per cent or 21 cents to $11.43, and UOB ended 0.9 per cent or 24 cents down at $25.58.

Meanwhile, Hong Kong stocks finished with fresh gains yesterday, reversing an early sell-off, as optimism over the long-term recovery overcame concerns about Covid-19 and China's regulatory crackdown.