Singapore shares drop to over three-week low; ST Engineering leads fall

SINGAPORE (Reuters) - Singapore shares fell to a more than three-week low on Friday and were heading for a second straight weekly loss, with Singapore Technologies Engineering leading the decline.

ST Engineering dropped as much as 2.9 per cent to a two-month low of $4.08 after reporting a 10 per cent fall in its third-quarter profit.

The benchmark Straits Times Index was down 0.5 per cent at 3,185.11 after falling to a low of 3,182.15, its lowest since Oct 16. The index was also on track for a weekly loss of 0.5 per cent.

Asian stocks slumped after Wall Street suffered its biggest fall in more than two months. The MSCI's broadest index of Asia-Pacific shares outside Japan was 0.7 per cent lower.

Commodities firm Wilmar International fell 2.6 per cent to a nearly three-week low of $3.36, despite a 2.5 per cent rise in its third-quarter net profit.

Wilmar reported strong growth in its sugar business, although its palm oil operations struggled with lower crude palm oil prices and production yield.

CIMB analysts maintained their "outperform" call on Wilmar, but projected fourth-quarter earnings to be lower due to weaker contributions from the sugar business. The brokerage raised its target price to $4.12 as earnings improved for all key divisions other than plantations.