| |
| |
 |
| |
|
| |
|
| |
|
SINGAPORE: Singapore shares fell to their lowest in four years on Friday – the Straits Time Index (STI) dropped 7.34 per cent to end at 1,948.33 points, below the psychological level of 2,000 points.
The fall was driven by the continuing global financial instability and confirmation that the economy is in a technical recession. For the week, the STI has fallen 15 per cent.
The local bourse was taking its cue from other Asian markets on fears that authorities are unable to contain the global financial crisis.
Goh Mou Lih, head, Research, Westcomb Securities, said: "The credit crisis has turned into quite a mess now, and it depends on what policies the G7 can come out with to save the markets, as well as what actions the global central banks will act in the near future."
For now, investors are selling out of property and banking counters on fears that a technical recession in Singapore will crimp consumer spending. Blue chips like SingTel, Keppel Corp and Neptune Orient Lines all finished lower on Friday.
Singapore Press Holdings dropped nearly 9 per cent, before it announced that its full-year profits fell about 12 per cent to S$437 million.
Some analysts are advising investors to stay defensive in the current volatile market.
"Investors will actually go into defensive stocks like telco or SPH... even SIA is a good bet because they have a lot of cash. They won't be like other airlines going into trouble. Investors should also look at companies that are actually quite big," Mr Goh said.
But others are recommending a wait-and-see approach until more concrete measures emerge on how to tackle the financial crisis.
- CNA/so
|
