Singapore share prices closed 1.41 percent lower on Monday on profit-taking after last week's record-breaking run, dealers said. Losses in US stocks last week due to weaker-than-expected US economic data also hurt sentiment, they said.
The Straits Times Index (STI) fell 38.38 points to 2,708.47 on volume of 1.19 billion shares worth 1.01 billion Singapore dollars (647 million US). Losers outdid gainers 481 to 150 with 663 shares unchanged. Data suggesting the US economy has slowed more than expected provided an excuse for investors here to cash in on gains from the market's recent run-up to record levels last week, dealers said.
Valuations have become too high with the benchmark STI hitting all time high of 2,754.33 points on Friday. "It is mainly profit-taking today, but it is a healthy correction because the market has gone up a lot," a dealer at a local brokerage said.
"Fundamentally though, the outlook for Singapore is still healthy, domestic factors are good, and the property market is picking up." He said a sustained pull-back in the index may provide more buying opportunities, although much also depends on September quarter corporate earnings results.
Banks were a key drag on the market, with DBS Group Holdings losing 0.60 to 20.60, United Overseas Bank down 0.40 at 17.80, and Oversea-Chinese Banking Corporation slipping 0.05 to 7.00.
Blue chips also weighed heavily, with Singapore Airlines shedding 0.50 to 15.10 on weaker-than-expected second quarter to September results due to higher fuel costs offsetting growth in passenger and cargo traffic.
Singapore Telecommunications fell 0.01 to 2.63 and ST Engineering slid 0.01 to 2.95. Technology stocks also weakened, with Creative Technology declining 0.10 at 11.20, Chartered Semiconductor easing 0.02 to 1.18, and STATS ChipPac falling 0.025 to 0.965. Property heavyweights were weaker to flat, with City Developments down 0.10 at 10.80, CapitaLand down 0.10 at 5.30, and Keppel Land unchanged at 5.45.