Singapore shares closed 3.22 percent lower on Monday as investors took profits from a recent market rally, analysts said. The blue chip Straits Times Index (STI) shed 72.11 points to 2,166.10 on volume of 4.04 billion shares worth 2.41 billion Singapore dollars (1.65 billion US). Losers outnumbered gainers 396 to 225, with 573 issues unchanged.
Monday's decline underlined investor concerns that the recent stock market rally could not be sustained because the global economy was still in a slump. Singapore's economy, which is deep in recession, is highly depended on exports and will recover along with a global economic rebound, according to analysts.
"Unless there is a significant improvement in the macro economy soon to convince investors to shift funds out of other asset classes, this rally should peter out soon," said Tham Mun Hon, a strategist at Daiwa Securities. Among banking shares, DBS fell 66 cents to 11.24, Oversea-Chinese Banking Corp dropped 41 cents to 6.79 and United Overseas Bank shed 74 cents to 14.00.
CapitaLand slipped 13 cents to 3.12, City Developments retreated 44 cents to 8.05 and Keppel Land eased eight cents to 2.79. Singapore Airlines fell 34 cents to 12.20 and Singapore Telecommunications closed 14 cents lower at 2.71. Motor vehicle firm Jardine Cycle and Carriage rose 18 cents to 15.78 and agribusiness group Wilmar International gained 13 cents to 4.05.
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