STI loses ground as sanctions on Russia, Shenzhen lockdown bite

Singapore shares retreated yesterday as the global economic outlook remains clouded due to the widespread sanctions on Russia and China's new Covid-19 lockdown.

The Singapore Straits Times Index (STI) fell 0.54 per cent or 17.63 points to 3,232.03.

Said CIMB Private Banking's economist Song Seng Wun: "As the Russia-Ukraine war enters its third week, there is little hope that this new week will bring about any peaceful resolution to the conflict.

"Already, repercussions are being felt around the world on heightened geopolitical risk, and as energy and other commodity prices soared to record highs."

Meanwhile, China announced a full lockdown of Shenzhen following a fresh wave of Covid-19 cases.

Said Oanda Asia-Pacific's senior market analyst Jeffery Halley: "Fears of further supply chain disruptions if the port closes, or lockdowns spread, have combined to weigh heavily on Asian markets."

With the exception of Japan's Nikkei 225 and the Jakarta Composite Index, which gained 0.58 per cent and 0.43 per cent respectively, most key benchmarks in the region ended lower. Hong Kong's Hang Seng Index fell 4.97 per cent; South Korea's Kospi dipped 0.59 per cent and the Kuala Lumpur Composite Index was down 0.05 per cent.

Across the Singapore market, losers outnumbered gainers 349 to 145, after 1.38 billion securities worth $1.21 billion changed hands.

Of the 30 STI constituents, 25 ended the day in the red. Yangzijiang Shipbuilding was the worst performer on the blue-chip index, falling 3.6 per cent to $1.36.

At the top of the table was Venture Corp, gaining 0.2 per cent to close at $16.66. The other two counters that ended the day in the black were City Developments and Jardine Cycle & Carriage.

Thai Beverage was the most heavily traded on the STI, with over 32 million shares changing hands. The counter shed 0.8 per cent to 66.5 cents.