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SINGAPORE shares closed 2.66 per cent lower on Thursday on renewed concerns that the global economy is weakening rapidly, dealers said.
The main Straits Times Index skidded 49.62 points to 1,819.20. Volume traded totalled 1.12 billion shares worth $992 million and there were 146 rising issues, 308 losers while 862 issues were even.
Losses on the local market tracked similar trends regionally as initial euphoria over Barack Obama's decisive victory in the US presidential elections gave way to pessimsim about the global economy, dealers said.
'Although the market looks cheap compared to where it started the year, it's still not cheap compared to 2003 and nobody is really sure things won't get that bad again,' an analyst with a local securities firm told Dow Jones Newswires.
National carrier Singapore Airlines, releasing its earnings after the stock market closed, plunged 88 cents to 11.40. The carrier on Thursday said profit in the second quarter to September fell to US$323.8 million (S$480 million) from US$507.8 million a year ago.
It warned of turbulence for the industry which is coping with a global slowdown.
The financial turmoil around the world and weak consumer confidence are impacting demand for air transportation, the carrier said.
'Although advance bookings for the immediate next quarter are holding up reasonably well, there are signs of weakness beyond that.' Singapore Telecommunications was four cents up at 2.35 and Neptune Orient Lines was off 10 cents to 1.25.
For the banks, DBS dropped 28 cents to 11.10, United Overseas Bank eased 40 cents to 13.38 and Oversea-Chinese Banking Corp fell 16 cents to 5.12.
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