Singapore share prices closed 0.42 percent lower on Monday on profit-taking, especially in banking stocks after they rallied last week on news of a relaxation of home mortgage financing rules, dealers said. Gains in China-linked stocks, which continued to post gains following Beijing's decision last week to revalue the yuan, helped trim the market's fall, they said.
The Straits Times Index fell 9.73 points to 2,309.61 on volume of 768.6 million shares valued at 812 million Singapore dollars (490 million US), down from 925 million shares worth 1.07 billion dollars on Friday.
Losers outnumbered gainers 244 to 220 while 782 stocks were unchanged.
Of the banking stocks, United Overseas Bank recorded the biggest fall, losing 30 cents to 14.60 dollars while DBS, Southeast Asia's largest bank, fell 20 cents to 15.50. Overseas-Chinese Banking Corp was unchanged at 12.50.
Kim Eng Securities said in a client note that Chinese-related stocks would likely to continue posting gains this week after a modest reaction on Friday to China removing the yuan's decade-old peg to the dollar.
"With investors digesting the news over the two-day break, China-related plays should continue to stay in focus this week," Kim Eng Securities said.
"Singapore companies with business exposure to the China market and thus earning revenue in yuan should also benefit from the stronger yuan."
China-based water treatment firm Sinomem was up two cents to 69.5 cents while Chinese bottle and packaging manufacturer Full Apex was up 1.5 cents to 39.5 cents and China-based meat supplier People's Food gained 1.5 cent to 86 cents.
UOB's Kay Hian said shares of property developers with significant exposure in the Chinese real estate market such as CapitaLand and Keppel Land Ltd also benefited from the currency adjustment.
CapitaLand rose three cents to 2.80 while Keppel Land added two cents to 3.10.
Hian said CapitaLand would be the biggest beneficiary among Singapore property developers of the yuan revaluation, given that it has the largest exposure to the Chinese real estate market.
Among tech stocks, Chartered Semiconductor fell two cents to 1.42.
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