STI down 0.4%, in line with most regional markets’ declines

SINGAPORE - Singapore shares dropped on Tuesday amid declines in key regional markets. Department of Statistics data on Tuesday showed

a pickup in Singapore retail sales

– by 1.1 per cent in July, a slight improvement from June’s 1 per cent growth.

The month’s statistics missed forecasts of a median 2.1 per cent rise by private sector economists polled by Bloomberg.

The benchmark Straits Times Index fell 0.4 per cent, or 12.14 points, to 3,226.83. In the broader market, losers outnumbered gainers 286 to 274 as 1.16 billion shares worth $656.16 million changed hands.

DBS Bank was the most active counter by value. Its shares ended down 0.3 per cent at $33.33.

The other local banks also closed the day lower – OCBC Bank was down 0.8 per cent to $12.57 while UOB fell 0.3 per cent to $28.53.

Among the top gainers in the Singapore market were Shangri-La Asia, which closed up 3.6 per cent to HK$5.80, and Hotel Royal, up 6.7 per cent to $2.08.

Counters that were heavily sold on Tuesday include Jardine Cycle & Carriage, which slipped 1.1 per cent to $33.37.

Key markets in the region ended mostly in the red on Tuesday, particularly Hong Kong. The Hang Seng Index fell 2.1 per cent to 18,456.91. Other markets in the Asia-Pacific, including Shanghai, South Korea, Australia and Malaysia, closed down marginally, between 0.1 per cent and 0.7 per cent.

Japan, however, saw the Nikkei 225 close 0.3 per cent higher at 33,036.76.

Mr Stephen Innes, managing partner at SPI Asset Management, believes the primary focus for Asian equities still lies in China.

This comes after the Caixin Services Purchasing Managers’ Index (PMI) substantially declined on Tuesday, creating a “regional market hiccup”, he said.

“Current price action suggests investors remain wary of the piecemeal and fragmented policy efforts implemented by the People’s Bank of China and other policymakers,” he added.

“From an investor perspective, it’s evident that there’s a lack of convincing evidence in August’s services sector performance that policy efforts are taking root, contributing to the prevailing angst.”

THE BUSINESS TIMES