Bulls And Bears

S'pore shares fall on virus fears as local community cases rise

  • STI down 1% as nearly all its constituents end in the red
  • Wilmar International leads decline with 4% drop to $5.01
  • In rest of Asia, HK and S. Korea close lower, Australia ends flat 

It was mostly a sea of red across the Singapore market yesterday, as investors' fears over Covid-19 grew amid fresh community cases emerging in recent days.

The benchmark Straits Times Index (STI) fell 1 per cent to end at 3,184.76. On the broader market, losers outnumbered gainers 345 to 160, after 1.71 billion securities worth $1.46 billion changed hands.

DailyFX strategist Margaret Yang said the virus situation, especially with the resurgence in India, is back under the spotlight.

She noted that trading volumes on the Singapore Exchange were rather high - considering that major markets in China and Japan were closed - suggesting that investors may be getting nervous over rising Covid-19 cases in the local community and the tightening of social distancing measures.

Nearly all the STI constituents ended in the red, with Wilmar International leading the decline. The stock fell 4 per cent to close at $5.01.

DBS Group Research said in a note yesterday that certain counters like Genting Singapore and ComfortDelGro could be affected by the tightened Covid-19 measures, such as reduced capacity at attractions and employees being asked to work from home.

Genting Singapore fell 1.7 per cent to close at 85 cents; ComfortDelGro was down 1.7 per cent to $1.69.

Yangzijiang Shipbuilding was the sole STI gainer, rising 2.8 per cent to close at $1.47. The firm announced last Thursday an 89 per cent increase in first-quarter net profit, with its outstanding order book at the highest level since 2009.

Elsewhere in the region, markets mostly closed lower. Hong Kong's Hang Seng Index fell 1.3 per cent and South Korea's Kospi was down 0.7 per cent. Australia shares were little changed yesterday, with the ASX 200 rising 0.04 per cent.

A version of this article appeared in the print edition of The Straits Times on May 04, 2021, with the headline 'S'pore shares fall on virus fears as local community cases rise'. Subscribe