Singapore's Straits Times Index Falls the Most in Three Weeks

Nov. 12 (Bloomberg) -- Singapore's Straits Times Index fell the most in three weeks after Bank of America Corp. and JPMorgan Chase & Co. said tighter credit markets and U.S. home-loan defaults may hurt earnings.
DBS Group Holdings Ltd., United Overseas Bank Ltd. and Oversea-Chinese Banking Corp. led declines on concern they will book further losses on securities related to U.S. mortgage investments. Singapore Telecommunications Ltd., the city's biggest company by market value, declined as investors opted for safer bets than equities.
"Investors are increasingly risk-averse,'' said Nicole Sze, Singapore-based investment analyst at Bank Julius Baer & Co., which manages $350 billion in assets worldwide. ``Nobody knows the full extent of the losses and you wonder whether the local banks have made adequate provisions.''
The Straits Times lost 88.55, or 2.5 percent, to 3,511.12 at the close in Singapore, its biggest decline since Oct. 22. About nine stocks fell for each that advanced on the benchmark. November futures slid 2.3 percent.
DBS, Southeast Asia's largest lender, fell 70 cents, or 3.4 percent, to S$19.80. United Overseas Bank, Singapore's second- biggest, dropped 50 cents, or 2.5 percent, to S$19.60.
Oversea-Chinese, which said last week it took a S$221 million ($153 million) charge on its asset-backed securities, declined 15 cents, or 1.7 percent, to S$8.50.
Bank of America and JPMorgan, the No. 2 and No. 3 lenders in the U.S., said Nov. 9 that their fourth-quarter results may be hurt as mortgage losses prompt investors to shun credit markets. Wachovia Corp., the fourth-biggest, said it lost as much as $1.7 billion this quarter on mortgage-related investments.
Singapore Telecom, Southeast Asia's largest phone company, slid 2 cents, or 0.5 percent, to S$3.84. CapitaLand Ltd., Singapore's biggest property developer, declined 35 cents, or 4.7 percent, to S$7.05. Keppel Corp., the world's No. 1 oil-rig builder, slipped 50 cents, or 3.7 percent, to S$13.20.
The following shares also fell in Singapore. Stock symbols are in brackets after company names.
Biosensors International Group Ltd. (BIG SP), a maker of medical stents and catheters, slid 5 cents, or 5.6 percent, to 84.5 cents. The company said its second-quarter loss widened to $11 million from $9.2 million in the year-earlier period because of higher costs and taxes.
Rowsley Ltd. (ROWS SP), a gaming and lottery operator, declined 6 Singapore cents, or 26 percent, to 17 cents. The company is dropping a plan to buy Perfect Field Investment Inc. in a so-called reverse takeover after the Chinese maker of solar-energy products failed to meet production-capacity targets, according to its filing to the stock exchange.
Singapore Exchange Ltd. (SGX SP), which operates the city's stock and derivatives markets, declined 70 cents, or 4.9 percent, to S$13.60. BNP Paribas gave the stock a ``reduce'' rating in new coverage, citing slowing earnings growth.
WBL Corp. (WBL SP), a maker of telecommunications equipment, fell 10 cents, or 2.5 percent, to S$3.90. The company said it will report a full-year loss because of charges stemming from its Thailand unit and lower earnings at its flexible printed circuit business.