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Singapore Stocks-Fall to one-month low; Tiger outperforms

Source : REUTERS
Last Updated: Tue, Mar 20, 2012 19:44 hrs

* Index down 0.7 percent at 0600 GMT

* Tiger Airways jumps on Australian approval

* Pacific Andes falls after news on rights issue plan

By Eveline Danubrata

SINGAPORE, March 7 (Reuters) - Singapore shares declined to the lowest in more than a month, largely in line with regional markets, on new concerns about the Greek bailout and slower global growth, but airline stocks outperformed.

Shares of index heavyweights United Overseas Bank Ltd and Oversea-Chinese Banking Corp dropped around 1.1 percent each on Wednesday.

By 0600 GMT, the Straits Times Index (STI) was down 0.7 percent, or 20.87 points, at 2,911.14. The index hit an intra-day low of 2,906.58, the lowest since Feb. 2.

Asian shares fell for the third day in a row on Wednesday as investors grew more risk averse.

Bucking the trend, shares of Tiger Airways Ltd rose as much as 3.3 percent after the budget carrier's Australian subsidiary received approval to operate a maximum of 64 sectors per day from October, up from 38 currently.

Tiger said it will also set up a second Australian base in Sydney. Singapore Airlines Ltd, which owns around 33 percent of Tiger, was up 2.3 percent.

"This news could lead to a faster turnaround to profitability for Tiger Australia than we earlier anticipated. We believe the worst is over for the airline," Melissa Yeap, an analyst at DMG & Partners Research, said in a report.

Among losers, shares of Singapore-listed Pacific Andes Resources Development Ltd fell as much as 8.7 percent after the fishing firm said it plans to do a rights issue of up to 1.676 billion rights shares at S$0.14 each.

The issue will be on the basis of one rights share for every two existing ordinary shares. (Editing by Anshuman Daga)




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