Singapore shares ended lower Friday as persistent concerns about the European debt crisis kept potential bargain hunters at bay.
The benchmark Straits Times Index closed 0.2%, or 6.78 points, lower at 2,772.75, after touching a low of 2,765.08, only the second time the index has stooped so low since mid-January.
For the week, the STI slipped 0.2%, adding to its 3.6% fall in the previous week. The index's gains on Monday and Tuesday were erased in the later part of the week, thanks to headlines suggesting Greece was preparing for an exit from the euro zone. Markets were also underwhelmed after a meeting of European Union leaders failed to provide any more clarity on plans to prevent a break up of the currency bloc. "Sadly nothing material has changed for investors on the grim outlook for the global economy, and the millstone around its neck called the euro zone," said Justin Harper, market strategist at IG Markets Singapore.
Losers and gainers across the market Friday were roughly even at 167 to 165, and volumes were slightly lower at 1.19 billion shares compared with 1.22 billion Thursday. The value of shares traded stood at S$820 million compared with S$896 million.
Local brokerage UOB KayHian said the 2,770 level remains "crucial support" for the STI. It expects further consolidation between that level and 2,835, fine-tuned from 2850, before another leg lower to around 2,680.
Among losers, Olam International's slide continued, ending down 1.8% at S$1.655, as fears over a global slowdown have dented sentiment toward commodity plays. The counter is now down 17.3% since it reported weaker-than-expected results in mid May.
Meanwhile, Global Logistic Properties closed up 2.3% at S$2.02, one of the STI's best performers after it said Thursday its fiscal fourth-quarter net profit more than tripled to US$156.5 million as the company recognized fair value gains on properties in China and Japan.
After the results, DBS Group Research said it continues to like GLP "for its leadership positioning in the Asian logistics warehouse space and strong execution track record." The house has a buy recommendation on the stock, with a S$2.31 target price.
Another top gainer was CapitaMalls Asia, which added 2.9% to S$1.425. The dividend-paying stock has attracted interest recently as the heavy selldown it has suffered since March has made its yield more attractive, analysts say
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