Singapore share prices closed one percent lower on Wednesday on investor concerns over rising geopolitical tensions in the Middle East and fresh worries over the US economy, dealers said. The Straits Times Index dropped 32.36 points to 3,201.75 on volume of 2.06 billion shares worth 1.9 billion Singapore dollars (1.26 billion US).
There were 230 rising issues, 513 decliners and 672 issues were even. Global tensions have risen since Iran seized 15 British sailors and marines last Friday, and the United Nations Security Council on Saturday unanimously approved further sanctions against Iran over its disputed nuclear programme.
Markets were absorbing a weak report on new US home sales that sparked concerns that the real estate market has not yet hit bottom, while a softer-than-expected reading on US consumer confidence fuelled fears that the housing market slump might dent consumer spending.
Sentiment is, however, expected to remain strong despite the market's recent losses, Fraser Securities research head Najeeb Jarhom said. "Liquidity flows from major new sources led by Middle East funds are unlikely to dry up as they view US economic problems especially related to the housing sector as an opportunity to buy into regional equities - specifically Singapore and Malaysian stocks whenever these markets drop in tandem with Wall Street's falls," Jarhom said.
All three Singapore banks finished lower. DBS Group Holdings was down 0.60 at 21.00, United Overseas Bank lost 0.40 to 20.90, and Oversea-Chinese Banking Corp eased 0.15 to 8.95.
Singapore Airlines surrendered 0.40 to 16.90, ST Engineering fell 0.04 to 3.32 but Singapore Telecommunications eased the downward trend to finish 0.04 higher at 3.24 on hopes of strong earnings. In the property sector, Keppel Land rose 0.05 to 9.25, CapitaLand advanced 0.05 to 7.85 but City Developments fell 0.40 to 14.00.
Technology stocks were lower with Chartered Semiconductor falling 0.03 to 1.48. Venture Corp declined 0.20 to 14.90 and Creative Technology lost 0.10 to 9.75. Thai Beverage was flat at 0.250 and Genting International dropped 0.005 to 0.820.