Singapore shares post biggest daily loss in 19 months

Singapore shares post biggest daily loss in 19 months

Singapore shares fell 2.5 per cent on Thursday in their biggest daily decline in more than 19 months, with telecommunications shares leading the losses, as global markets weakened after Federal Reserve signalled an end to its monetary stimulus.

The benchmark Straits Times Index ended at 3,133.26 points after its sharpest one-day fall since November 2011.

The broader MSCI's index of Asia-Pacific shares outside Japan tumbled 3.8 per cent amid a global sell-off across bonds, shares and commodities.

In Singapore, where all index components ended the day in the red, the telecommunications sector index led the retreat with a 3.4 per cent drop, followed by a 3.4 per cent slump in Real Estate Investment Trusts (REITs)and financial service shares, which dropped 2.8 per cent.

"Dividend plays and yield stocks took a big hit - telcos, REITs - as markets expect a hardening of interest rates," said one trader.

"Nobody's trying to catch the bottom."

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