Singapore share prices closed 6.03 percent lower on Monday after sharp falls on regional markets as investors continued to fear the worst for the US economy, dealers said. The blue chip Straits Times Index (STI) fell 187.10 points to 2,917.15, falling below the psychologically important 3,000 points level to a five-month low.
Volume was 2.15 billion shares worth 2.38 billion Singapore dollars (1.66 billion US). Decliners led rising issues 711 to 153, with 899 stocks unchanged. The bourse traded lower despite US President George W. Bush's call Friday for Congress to act quickly on a stimulus plan worth around 140 billion dollars to revive a US economy that some fear is on the brink of recession. "The measure is seen as too late and not strong enough to make an impact," said Najeeb Jarhom, senior vice president at Fraser Securities.
"It looks like the US is heading for a recession or may be already in recession, looking at the data," he said. Terence Wong, retail market research head at DMG & Partners Securities, said confirmation of a recession or otherwise might rid the market of its uncertainty and provide some kind of direction.
"We are seeing these jitters as investors are not sure of the situation and how severe the conditions are," Wong said. But there could be room for a technical rebound following recent sharp falls as bargain hunters emerge. Banking shares declined, with DBS Group down 1.18 dollars to 17.50 Singapore dollars, United Overseas Bank down 1.12 dollars at 16.64 and Oversea-Chinese Banking Corp sliding 45 cents to 7.38.
Among property stocks, City Developments slumped 68 cents to 11.02, CapitaLand fell 49 cents to 5.40, and Keppel Land dropped 46 cents to 5.74. Bourse operator Singapore Exchange dropped 75 cents to 8.80. Singapore Telecommunications declined 28 cents to 3.58, Neptune Orient Lines fell 21 cents to 2.85 and Singapore Airlines finished 70 cents lower at 14.92.