Singapore stocks end down 1.38% amid worries of US monetary policy change

Singapore shares closed 1.38 percent lower on Wednesday, as a batch of U.S. data reinforced views that the days of easy money from the U.S. Federal Reserve are numbered. U.S. new motor vehicle sales in June were poised to record their strongest month in more than five-and-a-half years, while factories posted a second straight month of gains in new orders in May. Strong data from the U.S. has fueled expectations that the Federal Reserve could pull back its bond-buying program, a key support to stock prices. CIMB Research said "if the 3,065 points low is taken out, expect prices to weaken further to try to fill up 3,045 points and 3,069 points gap or even the 2,989 points and 3,001 points gaps." SIAS Research said the Straits Times index will find support at 3,150 points after which the index may test the 3,100 points psychological level followed by 3,200 points. DBS Group Research said For Straits Times Index, the rebound that started from 3,065 points last month should be capped at 3, 220 points in the short-term. Phillip Securities Research also said "the Straits Times Index seemed to shy away from the 3,200 points level notwithstanding the bounce. Our base case has been that as long as the Straits Times Index does not decisively clear above the 3,230 points resistance level, downward bias will still likely persist with 3,100 points as near-tern support, followed by 3,000 points as the psychological support." Singapore's benchmark Straits Times Index sank 43.83 points to 3,129.49 points. Trading volume was 1.98 billion shares worth 1.17 billion Singapore dollars. Decliners outnumbered advancers 327 to 111, while 511 stocks did not move. Among top actives, AsiaMedic soared 13.4 percent to 12.7 Singapore cents. It said its unit signed an agreement with Cryoviva International Private Limited to set up a joint venture company in Singapore to carry out the business of stem cell banking in Singapore, China, Indonesia, Malaysia and Myanmar. Singapore Exchange dropped 0.6 percent to 7.04 Singapore dollars. It said its securities daily average value in June rose 59 percent to 1.6 billion Singapore dollars from a year earlier, while securities turnover was up 52 percent to 32.2 billion Singapore dollars. Singapore Technologies Engineering fell 2.7 percent to 4.01 Singapore dollars. Its aerospace arm signed a long-term agreement with UTC Aerospace Systems to provide maintenance, repair and overhaul services for Boeing 787 Dreamliner "Nacelle" systems. Among top gainers, Super Group rose 1.8 percent to 4.49 Singapore dollars, while Jardine Cycle and Carriage became one of the top losers by falling 2.5 percent to 41.01 Singapore dollars. (1 U.S. dollar equals to 1.27 Singapore dollars)