Local shares had enjoyed a three-day winning streak, but that came to an abrupt end yesterday as optimism from progress on Covid-19 vaccines was marred by disappointing industrial production figures.
The gloomier mood sent the Straits Times Index (STI) down 0.66 per cent, or 16.95 points, to 2,542.08. Gainers outpaced losers 204 to 201, with 2.53 billion shares worth $1.16 billion changing hands.
There was some disquiet in the market on news that Singapore's July industrial production was down 8.4 per cent year on year. The pace of decline increased from 6.5 per cent in June and heightened worries about economic weakness.
Barclays Bank economist Brian Tan said: "While we expect a sequential recovery in the second half after circuit breaker measures were eased from June, our full-year forecast still implies a contraction of 5.3 per cent (in gross domestic product) year on year in the second half.
"At the same time, the labour market will likely continue to deteriorate into the second half as more firms continue to reassess the viability of their operations."
ComfortDelGro was the best-performing STI constituent for the day, gaining 2.1 per cent to $1.46.
DBS analyst Yeo Kee Yan said the company will be a beneficiary from increased demand for transport as more people return to workplaces.
Sats was at the bottom of the blue-chip index, falling 4.5 per cent to $2.96.
Across the bourse, QT Vascular remained most heavily traded, with 581 million shares changing hands. The medtech company ended the day down 5.9 per cent at 1.6 cents.
It announced on Tuesday that it plans to acquire a Mongolian mining and energy company for $1 billion in cash and new shares. If completed, the transaction is expected to result in a reverse takeover of QT Vascular.
Meanwhile, Trek 2000 International was among the biggest decliners, down 27.8 per cent to 6.5 cents.
It said on Tuesday that legal proceedings against founder Henn Tan have no impact on the company's operations and businesses.
Mr Tan stepped down as chairman emeritus on June 29.
Asian stocks were mixed amid fresh virus concerns and bleak economic data.
The FTSE Bursa Malaysia KLCI Index slipped 0.4 per cent, while Japan's Nikkei 225 Index lost 0.03 per cent.
In Hong Kong, the Hang Seng Index was up 0.02 per cent, and China's benchmark Shanghai Composite Index slipped 1.3 per cent.
South Korea's Kospi shrugged off worries about rising domestic infections to end 0.1 per cent higher.
