Singapore shares posted a third straight day of losses as sentiments continued to be hurt by the Covid-19 surge, more global economic gloom and risks tied to the United States election. Wall Street's wobbly session overnight added more salt to injury.
The key Straits Times Index (STI) traded under water all day and closed at a near five-week low of 2,483.48 after falling 29.39 points or 1.17 per cent.
Key Asian gauges fared mixed, with Japan and Hong Kong falling 0.3 per cent. Australia, China and South Korea advanced between 0.1 per cent and 0.6 per cent.
"Trading the US election's risk fabric is becoming interwoven with assessing global downside economic risks from tightening social mobility measures in the euro zone," said Axi's Stephen Innes.
A new wave of Covid-19 cases has hit many European countries including Russia, France and Italy, forcing some to impose new curbs.
"Localised beatdown in economic activity across the euro zone could drive broader doom and gloom on the global recovery in 2021 before a vaccine becomes available," Mr Innes added.
On the other hand, DBS Group Research noted that Singapore has stabilised its Covid-19 situation, and while the economy is on the mend amid the phased reopening and recovery in some regional markets, the pickup will be uneven.
Overall trading volume in the Singapore market stood at 1.33 billion shares worth $1.08 billion. Among the STI constituents, three counters were up and 24 were down. Singapore's three banking stalwarts DBS, OCBC Bank and United Overseas Bank led the losses, which collectively lopped 15.3 index points off the STI.
Topping the day's most active list was Jiutian Chemical with some 250 million shares worth $21.3 million changing hands. The Catalist counter closed up 1.2 per cent to 8.3 cents following the completion on Tuesday of a $10.3 million share placement at an issue price of 6.03 cents.
SIA Engineering lost 2.9 per cent to $1.68.
The aircraft maintenance, repair and overhaul arm of Singapore Airlines issued a profit guidance yesterday morning that said it will recognise a non-cash impairment provision against its base maintenance unit's assets. This, it said, is expected to have a material impact on first-half fiscal year results.
DBS fell nearly 2 per cent to $20.90. A digital currency exchange backed by South-east Asia's largest lender is in the works, news reports said. DBS is still in the process of seeking regulatory approval.
