Singapore stocks in the red after lacklustre retail sales; STI retreats 0.3%

SINGAPORE – Shares went south on June 5 after disappointing retail sales in April gave already-nervy investors all the more reason to take a cautionary approach.

The wary mood left the benchmark Straits Times Index (STI) down 0.3 per cent or 8.93 points to 3,330.01, although gainers trumped losers 301 to 248 on trade of 1.3 billion securities worth $1.4 billion.

A lacklustre month of takings at the till was the culprit: Singapore’s retail sales fell 1.2 per cent year on year in April, below the forecast 1.9 per cent gain in a Bloomberg poll of private-sector economists.

UOB economist Jester Koh said the contraction was likely due to a “challenging recovery in tourist arrivals”. However, he expects retailers to enjoy some domestic and external support, complemented by major events such as concerts, business travel and meetings, conventions and exhibitions.

Chang beer maker Thai Beverage was the STI’s top gainer, up 3 per cent to 51 cents, while shipbuilder Seatrium was at the bottom of the index, falling 3.4 per cent to $1.72.

The three local banks were in negative territory: DBS Bank contracted 1.3 per cent to $35.36; OCBC Bank declined 0.8 per cent to $14.28; and UOB closed 0.4 per cent lower at $30.69.

Regional indexes were mixed after a night of mediocre gains on Wall Street, where the S&P 500 revived in late trading to record a 0.2 per cent increase for a third consecutive day. It is now up 11 per cent for the year.

The tech-focused Nasdaq also added 0.2 per cent while the Dow Jones Industrial Average rose 0.4 per cent.

Hong Kong’s Hang Seng Index closed down 0.1 per cent. Japan’s Nikkei 225 declined 0.9 per cent and Malaysian shares slipped 0.4 per cent but South Korea’s Kospi gained 1 per cent.

Australian shares were another winner, with the market rising 0.4 per cent to its highest point in over a week.

THE BUSINESS TIMES