Singapore share prices closed 0.53 percent on Monday as investors worried about the impact of record oil prices on the local economy and beyond, dealers said. They said expectations that crude oil prices could surge past 60 US dollars a barrel will further dampen investor confidence after recent weak economic data.
The Straits Times Index dropped 11.77 points to 2,197.38, off a low of 2,192.88. Volume was 531 million shares worth 570 million Singapore dollars (343 million US), down from 611 million shares worth 619 million dollars on Friday.
Declines led gains 332 to 112, with 536 stocks unchanged.
New York's main oil contract, light sweet crude for July delivery shot above 59 dollars on Monday for the first time as the market focused on possible energy shortages in the fourth quarter amid a lack of global refining capacity.
"The general consensus is that oil prices will continue to rise past 60 US dollars per barrel and this might pull the index even lower," a dealer with a local brokerage said.
"Investors will probably lock in gains as they expect further downside to the index."
Banks, regarded as the barometer of the economy, are especially vulnerable as investors look to trim their exposure if crude prices rise further, the dealer said.
United Overseas Bank was 30 cents lower at 14.50 dollars, Oversea-Chinese Banking Corp eased 20 cents to 11.80 and DBS was flat at 14.30.
Singapore Airlines, whose earnings could be hit if crude prices continue to rise, lost 20 cents to 11.30 dollars but Singapore Telecommunications bucked the downtrend to add four cents at 2.66.
Technology stocks were also lower with Creative Technology off 20 cents at 12.70 dollars, Chartered Semiconductor dropped four cents to 1.31 and Venture slipped 20 cents to 15.60.
In the property sector, City Developments eased five cents to 7.50 dollars, CapitaLand was steady at 2.30 and Keppel Land gained two cents to 2.48.
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