Singapore share prices closed 1.84 percent lower on Wednesday on profit-taking ahead of the release of US inflation data and Federal Reserve chairman Ben Bernanke's monetary policy report, dealers said. They said weak regional markets also added to the negative sentiment.
The Straits Times Index tumbled 67.08 points to 3,583.97 on volume of 9.14 billion shares worth 4.31 billion Singapore dollars (2.85 billion US). Decliners outpaced gainers 931 to 132, with 456 issues unchanged.
Markets will be keen to hear Bernanke's assessment of the mortgage sub-prime sector's troubles and whether there is any major change in the Fed's inflation outlook for the world's biggest economy. In recent weeks, the dollar has fallen sharply on concerns that the troubled US housing sector could spread into the wider American economy, analysts said.
Dealers said the sell-off in Singapore was led by property stocks after the government said it has raised the development charge, a tax levied on property redevelopment, amid a real estate boom.
"Fresh worries about the outlook for US inflation triggered the sell-off around the region," a dealer with a local brokerage said. Investors also used the government's move raising the property development charges as an excuse to sell across the board, given the currently rich valuations of Singapore equities. Property heavyweights City Developments fell 0.40 to 15.90, CapitaLand dropped 0.15 to 7.55 and Keppel Land lost 0.15 to 8.55.
Among other property counters, Wing Tai Holdings was down 0.26 at 3.70, Wheelock eased 0.16 at 3.32 and UOL was off 0.25 at 5.55. Blue chips were also lower, with Singapore Telecoms losing 0.06 to 3.42, Neptune Orient Lines falling 0.35 to 5.60, Keppel Corp down 0.60 at 13.10, and ST Engineering declining 0.10 cents to 3.70 dollars.
Banking stocks were not spared. DBS Group Holdings fell 0.20 to 23.40, United Overseas Bank sank 0.50 to 22.60 and Oversea-Chinese Banking Corp closed 0.10 lower at 9.30 dollars. Technology stocks were likewise sold off amid a lackluster outlook. Venture Corp was down 0.40 at 15.40, Chartered Semiconductor fell 0.03 to 1.29 and Creative Technology dipped 0.10 to 7.25.
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