STI slips 0.6% as Chinese stocks tumble
The Straits Times Index closed at 2603.40 on Thursday (Feb 25), after rising as much as 0.8 per cent earlier in the day.
- Posted 25 Feb 2016 20:57
SINGAPORE: The local stock market reversed early gains to close lower on Thursday (Feb 25) after Chinese shares tumbled more than 6 per cent.
The Straits Times Index fell 0.6 per cent to close at 2603.40, after rising as much as 0.8 per cent earlier in the day. All three local banks ended in the red, as did rig builders Keppel and Sembcorp Marine.
Worries about the cooling Chinese economy, and fears that China will allow initial public offerings (IPOs) to resume soon, were among possible reasons for the sharp decline.
The drop in Chinese stocks on Thursday was the biggest in a month as investors took profits following the market's recent rebound. China's Shanghai Composite fell 6.4 per cent, while Hong Kong's Hang Seng closed 1.6 per cent lower.
Global equity markets have also been volatile since the start of the year, hurt by growing concerns about China and the steep drop in oil prices.