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SINGAPORE: Singapore shares closed more than five per cent lower on Monday, joining a global rout by investors amid fears of the global economic outlook, dealers said.
The blue-chip Straits Times Index (STI) ended down 5.61 per cent, or 128.80 points, at 2,168.32 - its lowest close since June 2005.
Volume was 1.14 billion shares worth S$1.35 billion. Falling issues swamped gainers 460 to 105, with 739 counters unchanged.
"In the coming days, worries of slower global growth will likely mount and there is a possibility that credit markets may not unfreeze fully even with the US bank bailout," CIMB bank said.
Under the bailout approved at the weekend, the US government will buy up to US$700 billion worth of tainted mortgage-related assets at the root of the global financial crisis.
But investors feared the move will not be enough to solve troubles in global financial markets.
"The market expected the bailout to go through, so there's no relief bounce and now the focus is back on the real economy, which doesn't look too good," one trader said.
DBS Vickers Securities said the STI should move even lower, to 2,110.
Since the beginning of the year, most other stocks have been sold down substantially, and now it is the turn of the blue chips, said Daphne Roth, head of Asia research with ABN Amro. "It's portfolio liquidation by the funds," she said.
Banks were among the losers, with DBS 96 cents lower at S$15.60, UOB down 78 cents at S$15.74, and OCBC 49 cents weaker at S$6.61.
Property stocks were also hit. CapitaLand fell 20 cents to S$2.74, City Developments dropped 40 cents to S$7.61, and Keppel Land fell 33 cents to S$2.28.
Oil rig builder Sembcorp was a key loser, down 35 cents to S$2.62.
Singapore Airlines fell 64 cents to S$13.50, but Singapore Press Holdings bucked the trend, rising four cents to S$4.00.
- AFP/yt
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