Straits Times Index Declines On Higher Crude Oil, CapitaLand Shaes Gain
The Singapore dollar was also under pressure in the overnight. However, rebounded during the New York session to trade higher at 1.5138 against the US dollar. Although economic data was absent to push the currency higher, markets continue to speculate on a modest and gradual appreciation in the underlying currency without much opposition from the Monetary Authority of Singapore. The price action was, surprisingly, counter the stock market. In the overnight, Singapore stocks declined, breaking a three day streak as transportation and exporting stocks suffered on higher oil prices. However, the losses were limited as traders picked up developer stocks, still the favored investment in the regional market. Singapore Airlines led decliners as higher crude prices are likely to erode the companys bottom line as costs continue to climb. Incidentally, fuel costs contribute to 37 percent of the companys spending in the fourth quarter last year. Shares of the worlds largest carrier by market value, declined by 20 cents to S$18.60. Neptune Orient Lines shares were also in the red as the largest container shipping company is likely to be negatively effected by rising fuel costs. Stock in the company fell 6 cents to S$3.50. Notably, CapitaLand and Keppel Land Ltd. shares were picked up, minimizing any losses in the overall benchmark index. Both companies were higher by 1.2 and 1.8 percent respectively. Ultimately, the stock market was only able to lose 13.96 points to close at 3,374.52, down by just less than half a percent on the day.