Singapore shares drop

14 Aug, 2004

Singapore shares fell nearly one percent on Friday to close at a 2-week low, hit by surging oil prices and selling in technology stocks such as Venture Corporation.
The Straits Times Index ended down 15.30 points at 1,872.88-its lowest since July 27 and far from a 3-1/2-year peak of 1,942.80 hit on August 5.
In broader market, losers outnumbered gainers 231 to 110 in a moderate turnover of 479 million shares.
With oil prices near record highs and top technology names dishing out a gloomy outlook for the sector, investors have turned bearish over the prospects of global economy and its fallout on export-driven Singapore.
But some brokers said Singapore's five-day selling spree was partly sparked by some foreign institutions switching investments to South Korea and Taiwan.
South Korea's KOSPI and Taiwan's TAIEX were the only major indices in Asia to end Friday higher, as foreign investors turned net buyers.
Brokers said the switch in investments has also hit index-heavy banking stocks. DBS Group was down some 30 cents, while United Overseas Bank and OCBC were down 20 cents each.
Singapore still remains one of the top gainers in Asia, up around six percent so far this year, versus Taiwan and South Korea that are down by 8.5 percent and 2.25 percent respectively.
Singapore's largest contract electronics maker Venture Corp fell 50 Singapore cents, or three percent, to S$15.70 - just 10 cents short of its 14-month low hit on Thursday.

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