Singapore shares were headed for their fifth straight session of
decline, the longest losing stretch in nine months, led by falls
in consumer sector stocks as the region's economies are roiled
by worries about a withdrawal of the U.S. monetary stimulus.
Singapore's benchmark Straits Times Index fell as
much as half a percent to a nearly two-month low of 3,113.96, in
tandem with regional shares that dropped nearly half a percent
as measured by MSCI's broadest index of Asia-Pacific shares
Consumer goods stocks led the losses with a
1.2 percent decline, followed by healthcare plays that fell 1
"The favourable cost environment is also likely to reverse
in light of rising fuel costs and inflation concerns, which pose
potential challenges to operating margins and hinder the ability
of companies to pass on price increases to consumers," said OCBC
analysts in a note.
Inflation and economic uncertainty will continue to cap
sentiment in Singapore's retail sector, while regional retail
outlook has turned bearish in challenging economic environment,
Weakening regional currencies could also add to the pressure
on consumer companies in the coming months, OCBC said.
In other stocks, Albedo Ltd shares shot up 22
percent after the steel and raw materials trader announced its
plan to buy land in Malaysia's Iskandar Development Region from
Temasya Cergas Sdn Bhd, which may result in a potential reverse
takeover by Temasya.