Singapore shares fall amid US recession fears

SINGAPORE - Shares in Singapore recovered slightly at market close on March 11, after falling by as much as 2 per cent in the afternoon amid fears of a recession in the US.

The benchmark Straits Times Index (STI) closed at 3,825.83, down 1.9 per cent or 73.24 points.

Regional markets were also in the red. Japan’s Nikkei 225 was down 0.6 per cent, Australia’s S&P/ASX 200 index declined 0.9 per cent and South Korea’s Kospi dropped 1.3 per cent. Hong Kong’s Hang Seng Index fell 0.01 per cent.

In Singapore, local banks were among the biggest decliners on the STI. DBS Bank saw the greatest drop, falling 3.5 per cent or $1.62 to end at $44.23. UOB declined 3.4 per cent or $1.32 to $37.35, and OCBC Bank dropped 2.1 per cent or 36 cents to end at $16.69.

The top gainer was Jardine Matheson, climbing 3.4 per cent or US$1.35 to US$41.05.

Resort and casino operator Genting Singapore was the most actively traded counter by volume for a second day running, with 36.4 million shares worth $26.1 million traded. The counter ended flat at 72 cents.

Across the broader market, losers beat gainers 341 to 220, after 1.82 billion securities worth $2.34 billion were traded.

Mr Geoff Howie, a market strategist at the Singapore Exchange, said global macroeconomic forces “took hold” of the local market on March 11.

However, stocks with significant China exposure were able to maintain a more defensive line as the East Asian giant is increasing its fiscal deficit and reinforcing its role in global value chains, he said.

Among the Singapore-listed companies that held up was engineering solutions company ISDN Holdings, which has significant exposure to the China market. The counter rose 2.9 per cent or one cent to 36 cents.

Amid the expected market gyrations, Mr Howie said investors can expect more trading activity in Asia’s mid-to-small-cap segment, rather than mega-cap stocks, as their valuations are less stretched.

THE BUSINESS TIMES