Market Summary at 2 Jun 2012

Singapore’s shares closed lower on Friday, capping a volatile week with losses as global markets were roiled by bad news arising from the political and economic turmoil in Europe and data pointing to weakness in the Chinese economy.

The 30-share Straits Times Index closed 1%, or 26.83 points, lower at 2,745.71 after touching as low as 2,737.99 intraday. The benchmark's total loss this week was also 1.0%. Volume was lower at 1.10 billion shares compared with 1.52 billion on Thursday and losers outnumbered gainers 218 to 126.

However, the markets appeared to have taken weaker-than-expected purchasing managers' index data in China in their stride as some players took disappointing manufacturing data as a signal that Beijing may pursue further economic stimulus measures. "Chinese PMI did little to steady the nerves of traders today with the number undershooting the forecast, and risk assets initially reacted accordingly by slipping further into the red. However, the low PMI fuelled new stimulus hopes, which saw markets shift off the lows," Tim Waterer, CMC Markets' senior trader in Sydney, wrote in a note.

Europe's mixed opening didn't spur much buying interest, with players waiting on the sidelines before key U.S. nonfarm payrolls data later. "Traders are searching far and wide for signs of optimism, but the economic data continues to paint a gloomy picture, hence the departure en masse from risk assets in May appears not to have run its course yet," Waterer said.

Commodity suppliers, with a large exposure to China, were among the worst hit on Friday. Olam International was the biggest loser, shedding 3.3% to close at S$1.61. Noble Group closed 2.2% lower at S$1.09 while Wilmar International gave up 1.6% to close at S$3.60.

Real estate companies too were hurt by the weak economic sentiment, especially in China. CapitaLand closed 1.6% lower at S$2.50, City Developments shed 1.7% to close at S$9.78 and CapitaMalls Asia was down 1.8% at S$1.385.

Global Logistic Properties, however, rose 0.5% to close at S$2.09 on value buying after the company's shares were battered in the two previous sessions.