Shaken by a financial crisis in Turkey and disappointment from local economic data, share prices in the Singapore market ended lower yesterday, with the key Straits Times Index losing 39.44 points, or 1.2 per cent, to 3,245.34.
About 2.31 billion shares worth $1.2 billion changed hands, compared with 1.82 billion shares worth $1.43 billion last Friday. Losers outnumbered gainers 276 to 164.
The three banks led the market in declines, with DBS retreating 39 cents, or 1.5 per cent, to $25.20. OCBC Bank fell 23 cents to $11.57, while United Overseas Bank (UOB) declined 38 cents to $27.62.
Singtel extended a fall that began after it reported on Aug 8 a 6.6 per cent decline in net profit for the first quarter. Its share price retreated eight cents, or 2.55 per cent, to $3.06.
Shares of Wilmar International fell six cents, or 1.9 per cent, to $3.13 ahead of its second-quarter earnings announcement, released after market close. Net profit for the agribusiness group increased more than five times from a year ago to US$316.4 million (S$435 million).
A financial crisis in Turkey, stemming from US sanctions, sparked fears of contagion around the world, although analysts said the risks were limited.
DBS rates strategist Eugene Leow said Asia does not have meaningful exposure to Turkey and should not experience any contagion effect.
Yesterday, the Ministry of Trade and Industry (MTI) reported that Singapore's final gross domestic product growth was 3.9 per cent year-on-year for the second quarter - higher than advance estimates of 3.8 per cent but missing market consensus, which had forecast 4.1 per cent growth. It was also slower than in the first quarter, when the economy expanded 4.5 per cent.
"Outward-oriented sectors including manufacturing, finance and insurance, wholesale trade, and transportation and storage are expected to continue driving the growth but the pace of expansion is expected to moderate in the second half of 2018," said a team of UOB research analysts.
UOB is keeping its forecast of 2.8 per cent growth for this year, while MTI is maintaining its 2.5 to 3.5 per cent forecast.
There will be no change in current monetary policy as a result of the projected slowdown, as the Monetary Authority of Singapore has anticipated and factored it into the central bank baseline, said its deputy managing director Jacqueline Loh.
