Singapore Stocks Drop 1.33% along with Regional Key Indices

SINGAPORE’s stock market was in the red on Monday (Jun 13), alongside most regional key indices that were savaged by fears of bigger policy rate hikes by the United States and China’s possibly re-imposing new lockdowns to stem the coronavirus.

The key gauge Straits Times Index (STI) slid 1.33 per cent or 42.38 points to 3,139.35, with only 3 counters having managed to escape unscathed.Singtel : Z74 +0.79%trading cum dividend rose 0.79 per cent to S$2.54,Sembcorp Industries : U96 +0.36%was 0.36 per cent higher at S$2.79, andDFI Retail Group : D01 0%(formerly Dairy Farm International) was flat at US$2.90.

Yeap Jun Rong, market strategist at IG, pointed out that last week’s sell-off has marked a break below a key downward trendline, which has been supporting the STI on at least 7 occasions since November 2020.

“A break below the trendline may suggest bearish sentiments taking greater control and that may leave the 3,000 psychological level on watch over the longer term,” said Yeap.

The broader market painted a similar picture, with the number of decliners more than double that of gainers at 407 to 151, as 1.65 billion securities worth a total of S$1.44 billion were traded.

As its controversial proposed merger with Keppel Offshore and Marine is thrust into the spotlight by a minority shareholder who is staging a campaign to vote against the move,Sembcorp Marine : S51 -4.2%was the most active counter on a turnover of 124.9 million shares and closed 4.2 per cent down to S$0.114.

Electric vehicle companyNio : NIO -7.97%shares were down 7.97 per cent at US$ 17.90, despite the China-based maker reporting a smaller quarterly loss of 1.8 billion yuan (S$370 million) last week.