Singapore shares closed flat on Thursday, recovering from heavy earlier losses but the overall mood remained bearish as investors worried about turbulence in global financial markets, dealers said. The blue chip Straits Times Index closed 0.08 points lower at 2,419.21, recovering ground from a mid-day fall of 4.50 percent.
Volume totalled 1.63 billion shares worth 2.11 billion Singapore dollars (1.47 billion US) with losers outpacing winners 379 to 211, while 757 issues were flat. One dealer said investors were expected to remain pessimistic in light of the current turmoil, and immediate support for the Index was seen at 2,300.
Morgan Stanley analysts said they expect tough times for local property developers and further declines in property stocks. "We remain convinced that the 19 percent decline in property stock share price performance from a month ago is not the bottom," the US investment bank said. Among property stocks, CapitaLand fell 17 cents to 3.79 Singapore dollars, City Developments rose 14 cents to 9.00 and Keppel Land dropped eight cents to 3.11.
Among the banks, DBS fell two cents to 16.12, United Overseas Bank gained 22 cents to 16.72 and Oversea-Chinese Banking Corp was off two cents to 7.34. Singapore Airlines surrendered 12 cents to 14.80 and Singapore Telecommunications was three cents higher at 3.32.