STI closes down by 1.41% after North Korean nuclear test spooks investors

The benchmark Straits Times Index slid by 46.29 points, or 1.41 per cent, to close at 3,230.97 points - wiping out the 12-point gain from its previous close on Aug 31.
The benchmark Straits Times Index slid by 46.29 points, or 1.41 per cent, to close at 3,230.97 points - wiping out the 12-point gain from its previous close on Aug 31. PHOTO: ST FILE

SINGAPORE - Local equities sagged on Monday (Sept 4) upon return from a long Hari Raya weekend, in the wake of Pyongyang's surprise nuclear test on Sunday.

The benchmark Straits Times Index slid by 46.29 points, or 1.41 per cent, to close at 3,230.97 points - wiping out the 12-point gain from its previous close on Aug 31.

All three local banks saw their shares end the day lower.

DBS Bank was down by 27 cents or 1.3 per cent at S$20.35, while UOB was lower by 44 cents or 1.8 per cent at S$23.59 and OCBC Bank closed lower by 25 cents or 2.2 per cent at S$10.92.

CMC Markets Singapore analyst Margaret Yang said in a morning note: "The local shares market is lacking fresh catalysts after second-quarter earnings.

"Therefore, external factors such as US economic data, geopolitical issues and crude oil prices are going to dominate the movements in local share markets in the short term."