SINGAPORE, (PNA/Xinhua) — Singapore shares closed 0.25 percent lower, as the U.S. government shutdown dragged on with no obvious end in sight, stirring unease about the country’s economy and its debt ceiling.
A meeting between President Barack Obama and congressional leaders produced nothing but blame and counter-blame, dimming hopes of an early end to the impasse. Another fight over the U.S. debt ceiling is still looming. The ceiling is far more important than the shutdown since it could lead to an unprecedented default by the United States, an outcome the market assumes is unthinkable.
OCBC Investment Research reckoned the benchmark index may ” continue to trade in a lackluster 3,140 points and 3,180 points range today, given weak cues from Wall Street overnight and morning declines by Tokyo market.”
Phillip Securities Research said “market continues to watch for progress on U.S. government federal budget talks. Key risk event ahead would be the debate on raising the U.S. debt ceiling.”
DBS Group Research said “we had pegged ranged bound trade from 3,150 points and 3,250 points and the index is currently at the lower band level. We see limited downside, tweaking support levels to 3,145 points that is around current level and should this level not hold, 3,100 points.”
Singapore’s benchmark Straits Times Index shed 7.79 points to 3, 144.79. Trading volume was 3.19 billion shares worth 1.3 billion Singapore dollars. Decliners outnumbered advancers 239 to 173, while 546 stocks did not move.
Cordlife Group inched down 0.4 percent to 1.28 Singapore dollars. It has proposed a private placement of 26.8 million shares at 1.25 Singapore dollars each that is expected to raise gross proceeds of 33.5 million Singapore dollars, which will be used to fund its expansion plans abroad, including investments, joint ventures, acquisitions or strategic alliances, while the rest will be used for general working capital purposes.
Artivision Technologies rose 4.5 percent to 14 Singapore cents. It expects to raise net proceeds of 4.27 million Singapore dollars from its proposed placement of 35.7 million new shares at 12.222 Singapore cents each. It intends to use the net proceeds to settle unpaid construction costs for the Thai factory of Colibri Assembly Thailand. The rest of the proceeds will be used for working capital requirements.
Among top gainers, DBS rose 0.6 percent to 16.23 Singapore dollars, while Jardine Matheson became one of the top losers by falling 0.2 percent to 53.50 U.S. dollars. (1 U.S. dollar equals to 1.25 Singapore dollars)