Singapore shares slid 0.9% by the midday on Tuesday along with other Asian markets on as fears that the euro zone’s debt problems will spread to larger economies such as Italy.
Singapore-listed property developers with exposure to China, such as Keppel Land (KLAN.SI) were among the worst hit, as investors pared their positions on continued worries that China’s high inflation could mean more tightening measures.
Singapore-listed property developers with exposure to China, such as Keppel Land (KLAN.SI) were among the worst hit, as investors pared their positions on continued worries that China’s high inflation could mean more tightening measures.
By the midday break, the Straits Times Index (STI) <.FTSTI> was down 28.37 points at 3,089.00. The total value of shares traded in the morning session was $655 million, up from S$541.5 million on Monday.
Local traders said they expect the STI to find support at 3,000 this afternoon.
“For Spain and Italy, the markets are already pricing in the likelihood of them running into trouble,” said Tey Tze Ming, a market strategist at Saxo Capital Markets.
Tey also said he expects Asian equity markets to see more downside amid growing uncertainty about debt problems in Italy and Spain.
In a bid to keep Italy and Spain from the same fate as Greece, Portugal and Ireland, euro zone finance ministers promised on Monday cheaper loans, longer maturities and a more flexible rescue fund. They said new measures would be announced “shortly”, but set no deadline.
Property developer Keppel Land, which also owns assets in China, fell 2.7% to $3.62 with 3.8 million shares changing hands.
Global Logistic Properties (GLPL.SI), which owns warehouses in China and Japan, fell 2.4% to $2.04 by the midday on concerns that a slow down in China’s economy could hurt demand for space at its assets.
Oil services provider Ezra (EZRA.SI) fell 2.2% to $1.525, on concerns that lower demand for crude oil may hurt its orders, traders said.
Oil prices fell for a third consecutive day on Tuesday as fears of a widening euro-zone debt crisis and a drop in Chinese crude imports rekindled concerns about a demand slowdown.
“Ezra’s shares have come off after its recent gains because oil prices have been slipping and this may not bode well for its order flow,” said a local trader.
However, rubber firm GMG Global (GMGG.SI) bucked the trend and surged as much as 7.8% to a seven-week high after a local newspaper highlighted that the firm is expected to benefit from rising demand from China, traders said.
GMG Global is the largest supplier of natural rubber to China, which consumes a third of the world’s supply of the commodity, the Business Times said in a column on Tuesday.
It also highlighted that GMG Global was one of the world’s few listed rubber firms with a presence in plantation, processing and distribution.
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