Singapore stocks fall as weak sentiment lingers; STI down 0.5%

SINGAPORE – Local shares took their cue from

a faltering Wall Street overnight

and headed south on Wednesday, although most key regional markets managed to keep their heads above water.

The jitters evident here sent the Straits Times Index (STI) sliding 0.5 per cent, or 15.04 points, to 3,200.03. Losers narrowly beat gainers 258 to 255 on trade of 1.3 billion securities worth just $876.9 million.

Most major regional indexes were more positive despite the hefty Wall Street losses, which were underpinned by concerns about the high United States dollar and uncertainty over the tech sector.

The S&P 500 dived 1.5 per cent, the tech-heavy Nasdaq lost 1.6 per cent, and the Dow Jones Industrial Average declined 1.1 per cent.

That level of red ink failed to deter investors in Hong Kong, who drove the Hang Seng Index up 0.8 per cent, while South Korea’s Kospi inched ahead 0.1 per cent, and the Nikkei 225 climbed 0.2 per cent.

It was a different story elsewhere: Malaysian shares fell 0.4 per cent and Australia’s ASX 200 trimmed earlier losses to edge down 0.1 per cent.

IG market analyst Yeap Jun Rong noted that China’s August industrial profits registered a softer decline than in previous months. “Gains may be more lukewarm as the data still revealed a year-on-year decline while property sector risks linger,” he said.

The STI’s top gainer was Jardine Cycle & Carriage, which rose 1.6 per cent to $32.49, while Venture Corp was at the other end of the spectrum, losing 2.2 per cent to end the day at $12.69.

The trio of local banks were a sea of red. DBS Bank fell 0.2 per cent to $33.43, as the bank assured customers that its delayed Fast and PayNow transactions should have been processed by Wednesday, after the service experienced delays on Tuesday. OCBC Bank slipped 0.1 per cent to $12.75, while UOB retreated 0.6 per cent to $28.24.

THE BUSINESS TIMES