Singapore shares close Thursday lower amid global gloom, STI down 1.2%

SINGAPORE – Shares from one end of the global trading sphere to the other went south on Thursday amid growing concerns about

interest rates in the United States

and simmering geopolitical tensions.

The Straits Times Index (STI) was down 1.2 per cent or 37.02 points to 3,099.60 on turnover of 1.7 billion securities worth $1.2 billion.

This followed a 1.1 per cent fall

on Wednesday. Thursday’s losers trumped gainers 405 to 219.

Key regional markets were also pulled into negative territory following losses on Wall Street overnight, where all three indexes fell by more than 1 per cent after yields on long-term bonds shot up to a new 16-year high.

The Kospi in Seoul closed down 1.9 per cent, Australia’s ASX 200 finished 1.4 per cent lower and the Nikkei 225 in Tokyo fell 1.9 per cent. The biggest loser of all was Hong Kong’s Hang Seng Index, which dropped 2.5 per cent.

IG market strategist Yeap Jun Rong believes unresolved risks in the property sector may have some part to play, given concerns over a potential default by troubled Chinese developer Country Garden.

“Despite some promising signs of policy success seeping into China’s economic data yesterday, Chinese equities failed to move higher, with the Hang Seng heading back towards its early-October low,” he added.

Another surge in US Treasury yields, lingering tensions in the Middle East and higher oil prices also seemed to dampen the appetite for risk-taking, Mr Yeap said.

The STI’s biggest loser was once again Jardine Matheson, which shed 2.3 per cent to US$40.90.

Heavily traded counters included Seatrium, which lost 3.3 per cent to 11.7 cents, Yangzijiang Shipbuilding, which fell 4.6 per cent to $1.45, and Thai Beverage, down 0.9 per cent to 54 cents.

All three local banks also ended lower. DBS slipped 0.5 per cent to $33.17, OCBC fell 0.9 per cent to $12.83 and UOB sank 0.8 per cent to $27.88.

THE BUSINESS TIMES