Singapore shares fall in tandem with most regional markets

Singapore shares fell yesterday, tracking losses across most regional markets, with investors cautious and in risk-off mode.

The benchmark Straits Times Index (STI) slipped 0.2 per cent or 7.75 points to close at 3,421.20.

Elsewhere in the region, key indexes in Japan, China, Hong Kong and South Korea ended between 1 per cent and 2.2 per cent lower.

DailyFX strategist Margaret Yang said in a note: "Lingering geopolitical unrest and fears about the US Federal Reserve tightening monetary policy may continue to suppress risk assets in the near term." She noted that investors are increasingly convinced of the possibility of a 50 basis point rate hike at the March Fed monetary policy meeting, which is sending the US dollar higher and stocks lower.

On the local bourse, losers beat gainers 318 to 167, after 1.62 billion securities worth $1.5 billion changed hands. Just six of the 30 counters on the STI ended higher.

Wilmar International was the top gainer, up 2 per cent to $4.54. ComfortDelGro finished at the bottom of the index performance table, down 2.1 per cent to $1.43.

DBS shares were the most actively traded by value, with 5.1 million shares worth $188.2 million changing hands, after the bank reported yesterday morning a 37 per cent year-on-year rise in fourth-quarter net profit. The counter slipped 0.1 per cent to end at $37.20.

Bank of Singapore's head of investment strategy Eli Lee said the volatility that has characterised markets this year would likely continue.

"In the scenario of military action, we could see a spike in oil and gas prices, which would exacerbate the issue of inflation over the near term and result in a market-wide risk-off move," he wrote in a note. "This would inject volatility into risk assets and cause a bid for safe havens such as the Japanese yen, the US dollar and gold."