STI down as investors weigh faster Fed taper, China property woes

Singapore shares ended the week in negative territory ahead of key inflation data from the United States and amid the China property debt crisis.

The Straits Times Index (STI) ended yesterday 0.22 per cent, or 6.84 points, lower at 3,135.61.

Said IG market strategist Yeap Jun Rong: "The tapering of asset purchases from the (US Federal Reserve) has taken greater focus lately, with the hawkish change in stance among Fed officials suggesting that it may come sooner rather than later, and the consumer price inflation data may potentially prompt an accelerated pace."

Also keeping investors on their toes are China's real estate woes.

Said Oanda senior market analyst Jeffrey Halley: "A massive debt restructuring exercise now beckons for China's more highly leveraged property developers, raising fears that China growth will take a dip next year."

With the exception of Indonesia's Jakarta Composite Index, which gained 0.14 per cent, most key benchmark indexes in the region ended the day in the red.

Japan's Nikkei 225 was down 1 per cent, Hong Kong's Hang Seng Index slipped 1.07 per cent, South Korea's Kospi slipped 0.64 per cent and Malaysia's Kuala Lumpur Composite Index shed 0.86 per cent.

Across the local market, decliners outpaced advancers 258 to 199, with about 1.86 billion shares worth $863.8 million changing hands.

CapitaLand Investment was the best performer among the STI constituents, with shares gaining 0.9 per cent, or three cents, to $3.47.

Singapore Airlines was at the bottom of the table, with shares slipping 2.4 per cent, or 12 cents, to $4.95.

Thai Beverage was the most heavily traded on the blue-chip index, with 24.1 million shares changing hands. It shares were down 1.5 per cent, or one cent, to close at 66.5 cents.