Singapore: Market falls on China's COVID curbs worries

The Singapore stock market finished session lower on Monday, 21 November 2022, on tracking decline on regional market bourses, as a record-high jump in COVID19 cases in China and uncertainty over the path of U.S. monetary policy dampened risk sentiments.

At closing bell, the Straits Times Index (STI) index was down 21.61 points or 0.66% to 3,250.62 after trading between 3,265.53 and 3,308.30. Volume was 1.72 billion shares worth S$965.40 million changed hands. There were 184 gainers and 355 decliners.

China is grappling with its worst outbreak in seven months, which had seen several cities placed under lockdown. Beijing's most populous district urged residents to stay at home on Monday, while local authorities in the Baiyun District of the southern Chinese city of Guangzhou locked down the area for five days as COVID-19 cases continue to mount. Many businesses in the district were shut and schools shifted classes online.

The Beijing government reported on Sunday that one person had died from the coronavirus, the first in mainland China in around six months amid rising infections. Cases rose to 26,824 nationwide on Monday from 24,215 a day earlier, according to government data.

Hawkish signals from the Federal Reserve drove up fears of a potential U.S. recession, with members of the central bank indicating that it will not curb its rate hikes until inflation is much closer to its annual target range. The minutes of the Fed's November meeting, due later this week, are expected to shed more light on the path of U.S. monetary policy.

Back to home, Jardine Matheson, was the top performer among Singapore's blue-chip stocks, gaining 1.6% to US$46.89. At the bottom of the table was Frasers Logistics & Commercial Trust, which fell 3.5% to S$1.10.

The trio of local banks ended lower. DBS fell 0.8% to S$35.26, OCBC Bank fell 0.8% to S$12.45. UOB dropped 0.7% to S$30.03.

Asia-Pacific stock markets were mostly lower on Monday, on worries about the impact of surging COVID-19 cases in China. Japan's Nikkei225 index declined 45.02 points, or 0.16%, to 27,944.79. Australia's S&P/ASX200 index was down 12.58 points, or 0.18%, to 7,139.25. China's Shanghai Composite Index declined 0.39%, or 12.20 points, to 3,085.04. Hong Kong's Hang Seng Index stumbled 336.63 points, or 1.87%, to 17,655.91. South Korea's Kospi rose 0.1%. South Korea's Kospi fell 1%, the Jakarta Composite Index fell 0.3% while the Kuala Lumpur Composite Index fell 0.1%.

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