Singapore share prices closed sharply lower on Thursday on profit-taking in blue chips following a record-busting run, dealers said. The Straits Times Index slumped 41.61 points, or 1.32 percent, to 3,108.63. The index had retreated after touching a new all-time record high of 3,173.98 in early trade.
Volume was 2.66 billion shares worth 2.13 billion Singapore dollars (1.39 billion US) with 202 advancing issues, 623 decliners and 531 unchanged. "On the whole I think the market correction... is more technical in nature," UOB Kay Hian dealing director John Yap said.
Expectations of a cut of at least a percentage point in the corporate tax rate of 20 percent had generated strong buying, lifting the index up 72.32 points to a new record peak Monday. "I think the market has gone up too much, so this is just a healthy correction," another dealer from a local brokerage said. The Shanghai Composite Index closed 117.76 points lower to 2,857.37, its largest single-day slump since July 13, 2006.
Blue chips were mostly down. Singapore Airlines fell 0.40 to 17.20, Singapore Press Holdings was down 0.06 to 4.66, Singapore Telecommunications was 0.10 lower at 3.40 and ST Engineering unchanged at 3.36.
Banking stocks were also mostly lower. DBS Group Holdings and United Overseas Bank declined 0.30 to 22.40 and 18.70 respectively and Oversea-Chinese Banking Corp ended flat at 7.90. STATS ChipPAC bucked the market trend, rising 0.02 to 1.26, after reporting a forecast-beating fourth quarter net profit.
Chartered Semiconductor also gained 0.01 to 1.35 and UTAC rose 0.025 to 0.830 ahead of the release of their financial results while other technology stocks succumbed to profit-taking. Venture Corp fell 0.20 to 14.10 and Creative Technology slid 0.30 to close at 10.50. Property heavyweights were also lower. CapitaLand was down 0.20 at 6.85, Keppel Land shed 0.40 to 7.50 and City Developments fell 0.60 to 14.30.
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