Local shares down on weak sentiment

Dimmer prospects for a gradual reopening of the world economy condemned local shares to a sour end to the week.

The Straits Times Index (STI) fell 24.21 points or 0.95 per cent yesterday to 2.518.16 and down down 3.69 per cent for the week.

The STI dipped at the open but crept higher over the day as Singapore's manufacturing sector reported a surprise surge in activity last month, up 16.5 per cent from the same period a year earlier on higher pharmaceuticals output.

Still, the impact of Covid-19 will be felt more keenly by the sector in April, when the partial lockdown measures were enforced.

There were 1.22 billion shares worth $1.08 billion traded with losers thumping gainers 259 to 158.

Catalist-listed Singapore eDevelopment was the most active, closing 25 per cent higher at five cents on volume of 74.6 million. Its United States subsidiary, Impact BioMedical, said on Thursday that its effective ownership in a suite of antiviral and medical technologies that have shown "encouraging Covid-19 testing results" is valued at $542 million.

Catalist-listed investment holding firm 3Cnergy, formerly HSR Global, was the second most active, closing 100 per cent higher at 2.6 cents on a volume of 57.9 million.

Hotel Royal was the top gainer, up 7.41 per cent to $2.90 on volume of 3,400 while Jardine Matheson was the biggest loser, declining 5.67 per cent to US$47.11.

Regional markets were downbeat, as the news on Thursday that Gilead Sciences' experimental coronavirus drug remdesivir failed its first randomised clinical trial belted risk sentiment globally.

"With optimism around remdesivir as top view on the healthcare section, it's a bit of blow for the market at week's end," said chief global market strategist Stephen Innes at AxiCorp. Gilead said the findings were inconclusive as the study done in China was terminated early.

The Hang Seng fell 0.61 per cent, the Nikkei slipped 0.86 per cent and the Shanghai Composite fell 1.06 per cent. South Korean shares fell 1.3 per cent, the sharpest loss in over a week. Australian shares ended 0.5 per cent higher but it was the first weekly loss this month at 4.5 per cent. Investors are eyeing corporate results that are set to reflect the damage from the virus.

Indonesian stocks closed 2.1 per cent lower, down 3 per cent for the week. Malaysian stocks shed 0.9 per cent after movement curbs were extended till May 12.