Singapore shares retreat amid outflow of institutional funds

Singapore shares closed lower yesterday despite a rebound on Wall Street overnight.

The Straits Times Index (STI) retreated 17.54 points or 0.5 per cent to 3,322.05.

IG market strategist Yeap Jun Rong said the latest fund flow data from the bourse operator revealed the fourth consecutive week of institutional outflows for the blue-chip benchmark.

"On the sector level, the financial sector continues to face distribution for nine straight weeks," he added.

The banking trio saw prices fall yesterday. OCBC closed 0.7 per cent lower at $11.91, UOB declined 0.4 per cent to end at $30.67, while DBS lost 1.1 per cent to finish at $33.04.

The three banks' first-quarter results will be released on Friday, with analysts expecting lower earnings compared with last year as wealth and treasury income are weighed down by investors' risk-off sentiment amid the volatility in the market.

Only five out of the 30 STI constituents managed to close with gains, with one unchanged and the rest in the red.

The most active counter by volume was Sembcorp Marine with a turnover of some 543.6 million shares. The counter rose 7.4 per cent or $0.009 to end at $0.131.

In the broader market, gainers beat decliners 254 to 212 on a turnover of 1.97 billion securities with a total value of $1.51 billion.

The prolonged pandemic lockdown in Shanghai is causing jitters, with the Shanghai Composite Index dropping 1.4 per cent.

Australia's S&P/ASX 200 also ended lower with a 2.1 per cent drop.

Elsewhere in the region, stocks had a better showing.

Crude prices were slightly higher but were unable to recover fully from the hefty drop seen on Monday, caused by concerns about demand from China.

"Given Omicron's less-lethal footprint, traders had expected some easing of lockdowns before the Golden Week" holiday next week, said Mr Stephen Innes at SPI Asset Management.