Singapore share prices slumped 3.25 percent Monday on worries that rising inflation in the United States may mean an end to further rate cuts by the Federal Reserve, dealers said. The main Straits Times Index fell 112.82 points to 3,353.56.
Volume traded totalled 1.36 billion shares worth 1.75 billion Singapore dollars (1.22 billion US). There were 162 rising issues, 641 losers while 881 issues were flat. Dealers said sentiment was also weighed down by a surprise fall in Singapore's main exports in November, which the official trade promotion body blamed on declines in electronics shipments.
The government said Monday that non-oil domestic exports fell an annual 3.4 percent in November as electronics shipments sank 8.2 percent, the 10th straight month of declines. Analysts had expected key exports to increase 1.6-4.5 percent.
"Sentiment is already very weak and you have these kinds of lousy figures that do not help," said Song Seng Wun, research head at CIMB-GK securities. "This would be the perfect excuse for investors to rush out the door," he said.
Investors were also worried the Federal Reserve will not cut interest rates anymore to shore up the sluggish US economy after latest data showed consumer prices rose 0.8 percent in November, the fastest pace in more than two years. Core inflation, which excludes food and energy prices, was up 0.3 percent - the biggest gain since January.
Among blue chips, Singapore Airlines fell 30 cents to 17.50 Singapore dollars, Singapore Telecommunications dropped 18 cents to 3.78 and Neptune Orient Lines was off 12 cents to 3.98.
For the banks, DBS Group eased 70 cents to 19.70, United Overseas Bank lost 70 cents to 19.00 dollars and Oversea-Chinese Banking Corp eased 25 cents to 8.40 dollars. In the property sector, Keppel Land was 30 cents lower at 7.10 dollars, City Developments gave up 30 cents to 13.40 dollars and CapitaLand was off 50 cents at 6.10 dollars.
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