Singapore stocks slip on heightened risk aversion

Most Asian markets took a dive yesterday, with market participants taking on a risk-off mood following a Wall Street sell-off last week.

The Straits Times Index fell 0.35 per cent or 11.51 points to close at 3,283.35. Losers beat gainers 299 to 156 in the broader market, with 960 million securities worth $949 million transacted.

South Korean shares posted their biggest drop in five weeks, with the benchmark Kospi down 1.49 per cent. Hong Kong's Hang Seng Index fell 1.24 per cent, while the Kuala Lumpur Composite Index fell 0.34 per cent.

Bucking the trend was Tokyo's Nikkei 225 index, which reversed earlier losses and advanced 0.24 per cent.

"Some cautious sentiments may prevail for now, as market participants may hold back on taking on more risks leading up to the Federal Open Market Committee meeting outcome," said IG market strategist Yeap Jun Rong.

The Federal Reserve's next policy meeting, which will take place tomorrow, is expected to provide more clarity on rate hikes.

On the Straits Times Index, Singtel was the best performer, climbing 0.4 per cent to close at $2.49.

At the bottom of the table was Genting Singapore, which fell 1.94 per cent to 76 cents.

Shares of the local banking trio were mixed, with UOB falling 1.19 per cent to end at $30.01 and OCBC shedding 0.08 per cent to end at $12.30. DBS Bank gained 0.31 per cent to close at $35.66.

Ascendas Reit, which saw 8.22 million units worth $23.6 million changing hands, ended 1.04 per cent down at $2.86.

Among the counters that saw heavy trading were ComfortDelgro, Thai Beverage and Yangzijiang Shipbuilding.

Yangzijiang's chairman Ren Yuanlin had disposed of his entire direct interest in the shipbuilder.

Mr Ren sold 3.2 million shares for $4.23 million. He now holds a deemed 21.7 per cent interest in the company.

Yangzijiang shares closed unchanged at $1.32 yesterday.