Singapore shares closed 1.26 percent lower on Tuesday as investors looked for fresh leads amid mixed recovery signals for the ailing economy. The blue chip Straits Times Index (STI) fell 28.67 points to 2,238.79 on volume of 2.75 billion shares worth 1.61 billion Singapore dollars (1.11 billion US). Losers led gainers 311 to 194, with 800 issues unchanged.
Investors are questioning "the increasingly apparent disconnect between the stock market performances and economic performance, particularly as share prices breach most analysts' target prices," said CIMB. NetResearch Asia chairman Kevin Scully said investors were buying into penny stocks but not blue chips "which probably signals that the large investment funds have invested enough or are holding back."
"I think it's time to exercise patience at this level," he added. Banking shares closed lower. DBS fell 20 cents to 11.44 dollars, Oversea-Chinese Banking Corp eased 13 cents to 7.02 and United Overseas Bank shed 18 cents to 14.26. Among property shares, CapitaLand slipped seven cents to 3.44, Keppel Land inched down five cents to 1.95 and City Developments dipped a cent to 2.10.
Singapore Airlines retreated 14 cents to 12.00 and Singapore Telecommunications closed seven cents lower at 2.74. Beverage maker Fraser and Neave eased four cents to 4.02 and investment holding company Sembcorp Industries slid seven cents to 2.91.
Singapore Petroleum Co extended gains after oil major PetroChina said it had agreed to buy nearly half of the refiner. SPC was up three cents to 6.08 after advancing 1.01 dollars, or 20 percent, on Monday. SPC's parent firm Keppel Corp was up two cents at 7.30.