Singapore Shares End Down On Oil Price Concerns
SINGAPORE (Dow Jones)--Singapore shares ended lower Monday on worries over rising oil prices which contributed to Wall Street's fall on Friday, traders said.
Rising oil prices affect companies' earnings by increasing the cost of transporting goods, traders explained, adding that the domestic stock market also reacts to Wall Street as the U.S. is a major trading partner for Singapore.
The ST Index ended down 23.94 points, or 1.0%, at 2365.0.
Decliners led advancers 414 to 160, while volume was down to 991.7 million shares from Friday's 1.1 billion shares.
"I think there was some bargain-hunting after the initial drop," said a trader, noting that the STI closed off its intraday low of 2353.69.
Looking ahead, another trader says the STI is unlikely to recover yet "as the local market's correction phase isn't over". The weak Wall Street showing also continues to damp sentiment, he added.
The sharp rise in oil prices caused a fall in SIA's share price, as fuel makes up a large amount of the airline's operational costs. Shares fell 0.7% to S$13.30.
Banks, which are widely viewed as proxies for the economy, also dropped. DBS fell 1.2% to S$16.10 while UOB lost 1.4% to S$14.50 and Oversea-Chinese Banking Corp. closed 1.5% lower at S$6.60.
Among gainers, Keppel Corp, which builds oil rigs, rose 1.5% to S$13.20, on hopes rising oil prices will fuel oil exploration activities and demand for its rigs.
Oil refiner and petrol station operator Singapore Petroleum Co. also rose. It closed up 2.7% to S$5.65.
CapitaLand was the most actively traded blue chip, with Citigroup saying the deal by its unit, Ascott REIT, or ART, is positive from a long-term view.
Ascott Friday announced plans to spin off a pan-Asian real-estate investment trust that will own serviced apartments across the region with an initial value of S$856 million.
"ART will be a more capital-efficient vehicle to hold Ascott's properties, and will also give Ascott and CapitaLand a growing stream of fee income," said the brokerage.
CapitaLand rose 1.6% to S$3.82 while Ascott rose 6.3% to 85 cents.
Rising oil prices affect companies' earnings by increasing the cost of transporting goods, traders explained, adding that the domestic stock market also reacts to Wall Street as the U.S. is a major trading partner for Singapore.
The ST Index ended down 23.94 points, or 1.0%, at 2365.0.
Decliners led advancers 414 to 160, while volume was down to 991.7 million shares from Friday's 1.1 billion shares.
"I think there was some bargain-hunting after the initial drop," said a trader, noting that the STI closed off its intraday low of 2353.69.
Looking ahead, another trader says the STI is unlikely to recover yet "as the local market's correction phase isn't over". The weak Wall Street showing also continues to damp sentiment, he added.
The sharp rise in oil prices caused a fall in SIA's share price, as fuel makes up a large amount of the airline's operational costs. Shares fell 0.7% to S$13.30.
Banks, which are widely viewed as proxies for the economy, also dropped. DBS fell 1.2% to S$16.10 while UOB lost 1.4% to S$14.50 and Oversea-Chinese Banking Corp. closed 1.5% lower at S$6.60.
Among gainers, Keppel Corp, which builds oil rigs, rose 1.5% to S$13.20, on hopes rising oil prices will fuel oil exploration activities and demand for its rigs.
Oil refiner and petrol station operator Singapore Petroleum Co. also rose. It closed up 2.7% to S$5.65.
CapitaLand was the most actively traded blue chip, with Citigroup saying the deal by its unit, Ascott REIT, or ART, is positive from a long-term view.
Ascott Friday announced plans to spin off a pan-Asian real-estate investment trust that will own serviced apartments across the region with an initial value of S$856 million.
"ART will be a more capital-efficient vehicle to hold Ascott's properties, and will also give Ascott and CapitaLand a growing stream of fee income," said the brokerage.
CapitaLand rose 1.6% to S$3.82 while Ascott rose 6.3% to 85 cents.
posted by SmartYInvestor at 11:54 AM
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