SINGAPORE, Aug. 16 (Xinhua) -- Singapore shares closed 0.48 percent lower on Wednesday, as investors were cautious after strong U.S. retail sales revived the chance of another Federal Reserve rate hike this year.
Overnight data showed U.S. retail sales rose the most in seven months in July, as consumers spent more on 10 of 13 retail sectors. The numbers raised likelihood of another rate hike by the Federal Reserve for the rest of the year.
Maybank-Kim Eng Research said "technically, Straits Times Index exhibited a bearish engulfing candlestick yesterday, which point to near term weakness. Support for the index is at 3,275 points, with topside resistance is at 3,360 points."
Singapore benchmark Straits Times Index fell 15.98 points to 3,278.95 points. Trading volume was 1.74 billion shares worth 1.18 billion Singapore dollars. Decliners outnumbered advancers 262 to 168.
Best World International fell 1.1 percent to 1.34 Singapore dollars. In reply to query from Singapore Exchange, it said it has yet to convert its business to direct selling in China after its shares and other similar multi-level marketing firms slumped on Tuesday amid a government crackdown against pyramid schemes. It added all its products are currently sold at outlets and workshops under the export model and the clampdown will have little impact on its China business.
United Engineers ended flat at 2.69 Singapore dollars. The independent financial adviser SAC Capital viewed a takeover bid led by Perennial Real Estate and Yanlord Land as fair and reasonable. The consortium of Perennial and Yanlord triggered the mandatory takeover offer at 2.60 Singapore dollars per share after buying over the 33.5 percent stake of United Engineers for 729.7 million Singapore dollars.
Among top gainers, City Development Limited rose 1.6 percent to 11.70 Singapore dollars, while Jardine Strategic became one of the top losers by falling 1.4 percent to 42.87 U.S. dollars. (1 U.S. dollar equals to 1.37 Singapore dollars)
