Singapore shares fell by midday on Wednesday, largely in line with other Asian markets, on concerns about the slowing global economy, and Singapore Airlines extended its losses from the previous session as brokers warned of a challenging outlook.
At 1:00 p.m., the Straits Times Index (STI) <.FTSTI> was down 1.6%, or 52.12 points, at 3,124.97. The total volume of shares traded by then was 990.1 million shares and turnover was $965.1 million.
This compares with a volume of 858.7 million shares and turnover of $949.7 million on Tuesday. Local traders said support may kick in at around 3,100 points during rest of the session.
SIA (SIAL.SI) shares fell as much as 4.2% on concerns about intensifying competition, slowing demand and high jet fuel prices.
At 0500 GMT, the shares were down 3.1% at $12.19 with 4.5 million shares changing hands, around 1.5 times the average daily volume so far this year.
“Across the world, airlines have been adding a lot of supply such that the demand cannot catch up. SIA has tried to defend yields but their planes have been getting more and more empty,” said Kenneth Ng, head of research at CIMB Research in Singapore.
Singapore-listed Chinese shipbuilder (COSC.SI) continued sinking, down 2.1% at $1.425 on a volume of 46.8 million shares.
“For Cosco what has been hitting them is poor execution — the fact that even when they won orders, they could not manage to control costs,” Ng said.
Hutchison Port Holdings Trust (HPHT.SI), which owns port assets, fell as much as 8.5% on worries about port volume growth amid a weakening global economy, traders said.
Hutchison was 4.6% lower on a volume of 34.7 million units, more than 1.3 times the average daily volume in the last 30 days.
Shopping mall owner CapitaMalls Asia (CMAL.SI) fell 4.3% with 11 million shares changing hands. Traders said a major shareholder, Capital Group, has been selling the stock, which has fallen more than 30% so far this year.
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