Asian stocks fall on fears over Wuhan virus

Heightened concern over the spread of the Wuhan virus put Asian equities back on their downward path after Wednesday's relief rally spurred by bargain-hunting.

The renewed tension sent Singapore's Straits Times Index (STI) down 11.89 points, or 0.37 per cent, to 3,170.68 yesterday.

Australia, Japan, Hong Kong, Malaysia and South Korea were lower. Taiwan's Taiex Index dived 5.8 per cent after a week off, its largest single-day fall since October 2018. Chinese markets stay closed.

Much is still unknown about the virus and as a result, markets are understandably fraught with worry.

"While we are cautious that the virus may spread or mutate, we are aware of reports which suggest infected patients are being cured, detection kits and vaccines are being developed," noted Jefferies Singapore analyst Krishna Guha.

Trading volume here totalled 2.41 billion shares worth $1.43 billion. Losers outpaced gainers 303 to 170, with 19 of the benchmark's 30 counters ending in the red.

Healthcare-related stocks have been the hot ticket of late but many medical penny plays saw their scorching runs fizzle out yesterday as punters rotated into other listings.

These included property management group OEL, which surged 66.7 per cent to 3.5 cents with 241.9 million shares traded - the most on the Singapore bourse.

"The market seemed to play on recent news of the possibility that OEL's new investors might enter healthcare. But at present, no concrete details have been announced," said a trader.

Venture Corp continued to be a standout among STI counters, climbing 1.7 per cent to $16.41.

Shares in the electronic service provider have gained 3.2 per cent since key client Philip Morris International agreed on Tuesday to collaborate with South Korean tobacco giant KT&G on its smoke-free products outside South Korea.

Citi Research views the development as a positive for Philip Morris as a wider range of products should help it improve market share.

That said, Citi noted on Wednesday: "We are not able to read if this means there will be greater commitment to investing in research and development and further product development." If there is, Venture stands to benefit.

Among property trusts, Starhill Global Reit edged up 1.4 per cent to 72 cents after posting a flat second-quarter distribution per unit of 1.13 cents, in line with expectations.

CDL Hospitality Trusts fell 1.3 per cent to $1.56 after announcing a flat fourth-quarter distribution per stapled security of 2.77 cents.