Last night, the US market turned south as the Dow Jones Industrials dropped 76 points to end its trading session at 15,177. It seems that fears of a possible slow-down of the US Federal Reserve’s quantitative easing (QE) programme made market participants nervous about the scale-back on ‘easy money’.
With discussions going on in the Federal Reserve lately about pulling the plug on QE, it seems that even the Singapore stock market’s spooked as the Straits Times Index (SGX: ^STI) dropped 1.5% to 3,243 with only two of the index’s 30 components managing to end the day without a loss. Let’s take a look at some of companies that suffered even mightier declines than the index.
City Developments (SGX: C09) suffered the biggest fall today among the index components – shares were down 3.5% to $10.47. Yesterday, the real estate developer and hotel owner announced that it would be investing US$25m into a private equity fund that is focused on real estate investments in Greater China (Mainland China, Hong Kong, Macau and Taiwan).
Meanwhile, City Developments also had some good news to cheer about over the past weekend as it managed to sell 70% of the initial launch of 280 units of its latest residential project – the 616-unit Jewel @ Buangkok. But, that wasn’t enough to prevent a decline in its shares today.
Singapore Technologies Engineering (SGX: S63) was not far behind City Developments in the losers’ list with a 3.2% fall to $3.95 on no material news concerning the former. It seems that the engineering firm, with interests in aerospace, electronics, land systems and marine sectors, just had a simple down-day in a broad market sell-off. About a month ago, ST Engineering released its earnings results for the first quarter of 2013. It earned $134m in quarterly profit, essentially flat from a year ago. But, there were encouraging signs coming from its order book, which increased by 6.5% year-on-year to $13b.
Telecommunications giant SingTel (SGX: Z74) has seen its shares on a general down-wards path recently and today was no exception. It closed at $3.72 for a 2.9% drop and now lies 9% below a 52-week high of $4.09 that it hit barely two weeks ago. According to Bloomberg, last week, the company started seeking bids of more than A$2b (approximately S$2.4b) for Optus Satellite, its Australian satellite unit. SingTel had started mulling over the possible sale since the middle of March this year.
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