Singapore shares fell 0.71 percent on Thursday as investors cut some holdings in blue chips such as banks and Venture Corp after the market's strong run and ahead of second quarter corporate earnings.
A dealer at a local brokerage said the new outbreak of bird flu in Thailand and China was partly responsible for denting the market's sentiment.
The key Straits Times Index shed 13.25 points to 1,860.50. The index has risen in nine of the past 12 trading days and is up 5.4 percent since the start of the year.
Losers trounced gainers 234 to 102 overall as volume edged up to 742 million shares from 723 million on Wednesday.
OCBC Bank slipped 1.6 percent to S$12.30 and United Overseas Bank was down 0.7 percent to S$13.50.
Singapore Airlines and Neptune Orient Lines (NOL) fell despite a retreat in oil prices. Singapore Air lost 0.9 percent at S$10.90, and NOL fell 3.0 percent to S$2.28.
Kim Eng Securities said in a note that NOL is expected to report up to a 90 percent rise in second quarter net profit.
"While valuations remain undemanding relative to its peer group, we belive a record year in 2004 is already largely expected and has been priced in," it said.
Technology stocks extended their previous day's weakness, with computer peripherals maker Creative Technology down 2.3 percent to S$17.30, and contract electronics maker Venture easing 0.6 percent at S$17.50.
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