Singapore shares closed 1.72 percent lower on Tuesday after the government said exports fell by 24 percent in February, further confirming the bleak economic outlook. The blue chip Straits Times Index fell 27.29 points to 1,559.03 on volume of 996 million shares worth 804 million Singapore dollars (524 million US). Losers led gainers 207 to 173, with 851 stocks unchanged.
The 24 percent decline in February non-oil domestic exports followed the record 35 percent year-on-year plunge in January. "I think you can expect double-digit contraction at least in some months in the first half of the year," said Alvin Liew, a Singapore-based economist with Standard Chartered Bank. Banking stocks were down. United Overseas Bank fell 53 cents to 8.82, DBS shed 30 cents to 7.25 and Oversea-Chinese Banking Corp slid 15 cents to 4.37.
Among property stocks, Keppel Land was unchanged at 1.24 while City Developments closed 26 cents lower at 4.88 and CapitaLand eased nine cents to 2.07. Singapore Telecommunications eased a cent to 2.43 and Singapore Airlines slid 27 cents to 9.87. Agricultural products supplier Olam International gained six cents to 1.36 while marine engineering group Sembcorp Marine closed down a cent at 1.48.