Inflation, talk of US Fed tapering send STI and most Asian bourses lower

The Straits Times Index dropped 13.96 points, or 0.44 per cent, to 3,151.04.
The Straits Times Index dropped 13.96 points, or 0.44 per cent, to 3,151.04.PHOTO: ST FILE

SINGAPORE (THE BUSINESS TIMES) - Most regional bourses continued to be held ransom by inflation concerns and talk from the United States Federal Reserve about winding down its stimulus spending.

The wary mood sent the benchmark Straits Times Index (STI) down 13.96 points, or 0.44 per cent, to 3,151.04, with only four constituents managing to eke out gains while four closed flat.

Losers outpaced gainers 288 to 238 with 2.34 billion shares worth $1.07 billion transacted.

City Developments was at the bottom of the STI performance tally, losing 1.41 per cent to $7.72, although the property giant said on Friday (June 4) that it had applied for an initial public offering of a real estate investment trust (Reit) that could raise £500 million (S$940 million) on the Singapore Exchange.

However, the company reiterated that there is no certainty the listing will proceed.

OUE Commercial Reit, which had issued $150 million worth of five-year notes at 3.95 per cent on Wednesday, closed at 39.5 cents, up 1.28 per cent.

Catalist-listed CFM was the most active stock with 134.8 million shares. The counter added 32.77 per cent to 15.8 cents.

CFM provides metal stamping services, design, fabrication and the sale of tool-and-die used to make various components.

Other Asian bourses were generally down.

Hong Kong's Hang Seng Index was 0.17 per cent lower, while South Korea's Kospi fell 0.23 per cent.

Malaysian shares slipped 0.76 per cent and Japan's Nikkei 225 slid 0.4 per cent.

The winners included the Shanghai Composite Index, which was up 0.21 per cent, and Australia's ASX 200, which continued its buoyant ways of late, rising 0.49 per cent after a fall early in the session on the back of losses overnight on Wall Street.

The increase on Friday marked the third consecutive week of gains for the ASX.