Heavy trading pushes Singapore shares into the red

SINGAPORE – Local shares took a hit on Wednesday alongside other key markets in the region as China’s manufacturing purchasing managers’ index slid again in May. 

The news sent the benchmark Straits Times Index (STI) slumping 0.9 per cent or 28.76 points to close at 3,158.80. There was heavy trading across the session, with 2.7 billion shares worth about $2.8 billion changing hands while losers far outpaced gainers 348 to 231.

It was a similarly bearish trading day across the rest of the region, with all stock markets ending the day lower. The Nikkei 225 lost 1.4 per cent, the Hang Seng Index slipped 1.9 per cent and the Kospi fell 0.3 per cent.

The Bursa in Kuala Lumpur lost 0.7 per cent, while worrying inflation data pushed Australian stocks down 1.6 per cent – their biggest one-day drop in three months. 

SPI Asset Management managing partner Stephen Innes noted that Asia stocks and currencies “are getting crushed as disappointing factory activity in China is hammering sentiment across the region”.

“Now, we see a mad dash to the exits, proving that stocks are never too cheap to sell when sentiment turns rabid. We think the turn in sentiment is getting compounded as foreign investors grow wary of regional debt levels.”

OCBC Bank was among the top gainers for the day, adding 0.4 per cent to $12.27. It was the only lender to end the day in the black; the other two were among the biggest losers. 

DBS Bank was the top decliner, falling 3.3 per cent to $30.30, and UOB lost 0.4 per cent to $27.95.

Singapore Airlines was among the top advancers. It was reported on Wednesday that the flagship carrier is investing in a number of initiatives to draw customers, as its competitors race to add capacity to capture pent-up demand for air travel.

The stock rose 0.6 per cent to $6.41 on a cum-dividend basis. THE BUSINESS TIMES