Concerns over global economy weigh down S'pore shares

Singapore shares closed lower yesterday on lingering concerns over the state of the global economy amid rising Delta virus cases.

The key Straits Times Index (STI) retreated 29.5 points, or 0.96 per cent, to 3,041.73 as trading sentiments were also weighed down by the fallout involving China Evergrande Group.

The property developer's debt crisis has raised fears over contagion risks and doubts on the health of the world's second-largest economy.

Financial markets in China, Japan, South Korea and Taiwan were closed yesterday for holidays.

Key gauges in Hong Kong and Australia tumbled 3.3 per cent and 2.1 per cent respectively, while Malaysia finished the day 1.3 per cent lower.

The losses across the region came ahead of the United States Federal Reserve meeting this week, where policymakers are expected to move closer to the point of tapering and signal a hawkish shift in rate hike expectations.

"Ahead this week, one may look towards a series of central bank decisions in the likes of Indonesia, Japan, US, United Kingdom and the Philippines. On the economic front, a series of flash Purchasing Managers' Index figures may provide further clarity on the economic outlook ahead, in the light of ongoing supply chain issues, elevated input costs and Covid-19 risks," remarked IG market strategist Yeap Jun Rong.

Turnover in the local bourse saw 1.94 billion units worth $1.52 billion traded. Losers outpaced gainers 403 to 161.

Hatten Land was the day's most active with 91.5 million shares worth $6.14 million changing hands. The counter slipped 11 per cent to 6.5 cents.

The property developer said it has yet to receive a US$60 million (S$81 million) payment for the sale of its Malaysian unit Gold Mart.

This deal was approved by shareholders in November last year and its completion date fell due last Friday following multiple extensions.