SINGAPORE shares dropped on Tuesday (Sep 5) amid declines in key markets in the region.

Data from the Department of Statistics on Tuesday showed a pickup in Singapore retail sales, by 1.1 per cent in July, a slight improvement from June’s 1 per cent growth. Despite the uptick, the month’s statistics still missed analysts’ forecasts – of a median 2.1 per cent rise expected by private sector economists polled by Bloomberg.

The benchmark Straits Times Index fell 0.4 per cent, or 12.14 points, to 3,226.83.

Across the broader market, losers outnumbered gainers 286 to 274 as 1.2 billion shares worth S$656.2 million changed hands at the closing bell.

DBS : D05 0% was the most active counter by value. Its shares ended down 0.3 per cent at S$33.33. The other local banks also closed the day lower. OCBC : O39 0% was down 0.8 per cent to S$12.57, and UOB : U11 0% fell 0.3 per cent to S$28.53.

Shangri-La Asia : S07 0% and Hotel Royal : H12 0% were among the top gainers on the Singapore market. The counters closed up 3.6 per cent and 6.7 per cent at HK$5.80 and S$2.08, respectively.

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Counters that were heavily sold on Tuesday included Jardine Cycle & Carriage : C07 0%, which slipped 1.1 per cent to S$33.37.

Key markets in the region ended mostly in the red on Tuesday, particularly Hong Kong. The Hang Seng Index closed down 2.1 per cent at 18,456.91. Other markets in the Asia-Pacific, including Shanghai, South Korea, Australia, and Malaysia, closed down marginally, between 0.1 per cent and 0.7 per cent. Japan’s Nikkei 225, however, closed up 0.3 per cent higher at 33,036.76.

Stephen Innes, managing partner at SPI Asset Management, thinks the primary focus for Asian equities still lies in China. This comes after the Caixin services purchasing managers’ index substantially declined on Tuesday, creating a “regional market hiccup”, he said.

“Current price action suggests investors remain wary of the piecemeal and fragmented policy efforts implemented by the People’s Bank of China and other policymakers,” he added.

“From an investor perspective, it’s evident that there’s a lack of convincing evidence in August’s services sector performance that policy efforts are taking root, contributing to the prevailing angst.”