Singapore shares fell over 1 percent on Friday as global trade worries and weak oil prices hurt investor risk appetite, while most other Southeast Asian stock markets were subdued in the absence of supportive news.
Singapore’s FTSE Straits Times Index closed 1.3 percent lower, but posted a rise of 0.6 percent for the week in their fourth weekly gain in five.
Financials were the top losers on Friday with DBS Group
Holdings Ltd shedding 1.6 percent, while Oversea-Chinese Banking Corp Ltd declined 1.7 percent.
Among other losers, Keppel Corp Ltd fell 2.9 percent.
“Investors are generally cautious after more muted guidance from companies following the release of second-quarter results.
Most companies generally met expectations. However, the tariffs being implemented by China and the United States are starting to impact the real economy,” said Liu Jinshu, director of research at NRA Capital.
Global trade tensions deepened following Washington’s threat that it would impose fresh sanctions on Russia after it found that Moscow had used a nerve agent against a former Russian double agent and his daughter in Britain.
Oil prices declined on worries that an escalating trade dispute between Washington and Beijing will stall economic growth and demand for fuel.
“Oil prices are dipping towards recent lows, and this could increase headwinds to the offshore marine sector and Singapore banks’ loan portfolio,” said Wei Liang Chang, an FX strategist with Mizuho Bank.
Thai shares closed 1 percent lower, snapping three straight sessions of gains, with consumer staples and energy stocks leading the decline.
Convenience store operator CP All Pcl fell 3.7 percent and PTT Exploration and Production shed 2.1 percent.
For the week, Thai shares fell 0.4 percent after five straight weeks of gains.
Philippines stocks erased early gains to close marginally lower, dragged by financials.
Ayala Corp was the biggest drag on the index with a drop of 2.5 percent, while International Container terminal Services declined 2.8 percent.
For the week, Philippine shares closed marginally lower, snapping four consecutive weekly gains.
Indonesian shares closed higher for a second session in three and posted their third consecutive weekly gain.
Consumer products maker Unilever Indonesia was the biggest contributor with a gain of 1.3 percent, while Bank Rakyat Indonesia rose 1.8 percent.
Source: Brecorder
