Singapore stocks extend losses to third straight day

SINGAPORE – The credit downgrade in the United States earlier this week is still testing the nerves of local investors, with the market sliding for the third consecutive day on Thursday.

The jittery mood sent the Straits Times Index (STI) down 0.6 per cent or 20.96 points to 3,304.06, with gainers inching ahead of losers 303 to 288 on trade of 1.4 billion shares worth $1.2 billion.

“Market sentiments continue to reel from the US credit rating downgrade,” said IG market analyst Yeap Jun Rong. The bearish sentiment was sparked by rating agency Fitch cutting the US government’s credit rating from “AAA” to “AA+” on Tuesday.

Key Asian markets also finished lower. Japan’s Nikkei 225 index fell 1.7 per cent, while South Korea’s Kospi, Hong Kong’s Hang Seng and the KLCI in Malaysia slipped between 0.2 per cent and 0.5 per cent.

Australian shares were down for a second day in a row, retreating 0.6 per cent to a seven-week low after Wednesday’s 1.3 per cent plunge.

The regional falls followed a rough session on Wall Street overnight, with the S&P 500 diving 1.4 per cent, while the tech-focused Nasdaq lost 2.2 per cent – its worst one-day effort since February. The Dow Jones Industrial Average was off 1 per cent.

The STI’s worst performer was Singtel, which lost 2 per cent to $2.41. Other top STI losers included CapitaLand Ascendas Reit, Jardine Cycle & Carriage, and Jardine Matheson Holdings, with falls of between 1.6 per cent and 1.8 per cent.

All three local lenders finished in the red. DBS Bank ended 0.2 per cent lower at $33.76, OCBC Bank fell 1.1 per cent to $13.04 and UOB shed 0.3 per cent to $29.82.

The STI’s top gainer was Sembcorp Industries, which rose 1.3 per cent to $5.60. Seatrium was the most heavily traded of the blue chips, closing 1.5 per cent lower at 13.4 cents after 274.6 million shares changed hands.

THE BUSINESS TIMES