Singapore stocks fall as markets across Asia plunge; STI drops 1.1%

SINGAPORE – Red ink washed over regional markets on Sept 4 after

declines on Wall Street overnight,

triggered by renewed concerns over once high-flying tech stocks.

The Wall Street bloodletting was also due in part to renewed worries about a slowing economy, a rerun of the fears that rattled markets a month ago.

Key indexes notched their worst day since Aug 5. The S&P 500 lost 2.1 per cent, the Nasdaq plunged 3.3 per cent and the Dow Jones Industrial Average fell 1.5 per cent.

The carnage was especially pronounced in Japan, where the Nikkei 225 dived 4.2 per cent, its worst one-day loss for several weeks.

South Korea’s Kospi tumbled 3.2 per cent while Australian shares dived 1.9 per cent.

Hong Kong’s Hang Seng got off relatively lightly, falling 1.1 per cent, the same drop recorded by the benchmark Straits Times Index (STI), which shed 38.96 points to 3,441.38.

Local losers outnumbered gainers 373 to 207 on trade of 1.2 billion shares worth $1.4 billion.

The STI’s biggest decliner was consumer goods conglomerate Jardine Matheson, which slid 3.4 per cent to close at US$35.10.

The group’s investment holding company, Jardine Cycle & Carriage, also saw a sizeable decline, spiralling 3.3 per cent to $26.72.

Singtel was the STI’s biggest gainer, up 1.6 per cent to $3.15.

CapitaLand Integrated Commercial Trust, which proposed to acquire a 50 per cent stake in retail mall Ion Orchard on Sept 3, was the most actively traded by volume, with 55.7 million shares done.

The stock declined 3.3 per cent to $2.06.

Mr Yeap Jun Rong, market strategist at financial services company IG, said the market performance was brought about by a confluence of tech sell-offs and US growth concerns.

The unwinding of the Magnificent Seven tech stocks on Wall Street may trigger a shunning of Asian tech shares that have outperformed since the start of the year, added Mr Yeap.

THE BUSINESS TIMES