Singapore stocks decline, tracking Wall St losses

SINGAPORE - Singapore shares ended lower on March 5, tracking losses on Wall Street. The benchmark Straits Times Index (STI) lost 0.5 per cent or 15.11 points to 3,107.1.

Across the broader market, losers outnumbered gainers 356 to 194, after 1.39 billion securities worth $959.61 million were transacted.

Key indexes in the region also traded lower. The Nikkei 225 lost 0.03 per cent, the Hang Seng Index fell 2.6 per cent, the Kospi Composite Index was down 0.9 per cent, and the FTSE Bursa Malaysia KLCI shed 0.2 per cent.

Mr Stephen Innes, managing partner of SPI Asset Management, noted that the US market rally stalled ahead of a slew of potentially market-moving events – which include US Federal Reserve chair Jerome Powell’s speech on Capitol Hill and the release of US non-farm payroll data.

Given the persistent inflationary pressures, accommodative financial conditions, steady economic growth and robust labour market conditions, it is reasonable to expect a more hawkish tone from Mr Powell, Mr Innes said.

He said it is still challenging to envision a substantial departure from the recent guidance given by other policymakers. “The pullback underscores a sense of policy caution among investors, who are taking a moment (to) pause,” he added.

On the STI, City Developments Limited lost 0.9 per cent or five cents to close at $5.57.

The property giant told The Business Times on March 4 that it is “currently engaged in discussions on the potential acquisition” of Hilton Paris Opera hotel from asset manager Blackstone.

UOL was the biggest gainer, rising 0.7 per cent or four cents to $5.60. The trio of local banks ended mixed. DBS fell 0.1 per cent or two cents to $33.40, while the other two banks ended flat – UOB at $28.15 and OCBC Bank at $13.

THE BUSINESS TIMES