Singapore stocks end down 0.6 pct

Singapore shares closed 0.6 percent lower on Monday, after an upward revision in U.S. gross domestic product data renewed concerns for early interest rate hike in the world's largest economy.

On Friday, data showed that the U.S. economy grew at a 1.4 percent seasonally adjusted annual rate in the fourth quarter, compared with a previous estimate for 1 percent growth.

DBS Group Research said, "We expect the U.S. Federal Reserve to hike rates once in second quarter that lifts the Federal funds rate to 0.75 percent. This should occur either at the April or June policy meeting."

Singapore's benchmark Straits Times Index fell 17.10 points to 2,830.29 points. Trading volume was 2.52 billion shares worth 773 million Singapore dollars. Decliners outnumbered advancers 195 to 182, while 544 stocks did not move.

GMG Global dropped 1.6 percent to 60.5 Singapore cents, while Halcyon Agri Corporation rose 1.4 percent to 74 Singapore cents.

Sinochem International Corporation is proposing the merger of its natural rubber assets in GMG Global and Halcyon Agri Corporation to form "the world's largest natural rubber company."

Sinochem is making an offer of 75 Singapore cents for each Halcyon share to vendor shareholders Angsana Capital, Clear Tower Investments Limited, Pascal Guy Chung Wei Demierre, Andrew Trevatt and Leonard Beschizza.

The offer price is 18.1 percent higher than the last transacted price of 63.5 Singapore cents on January 11 before news articles were published asserting that Halcyon was in discussions with Sinochem on a potential transaction.

Among top gainers, Creative Technology jumped 13.2 percent to 1.15 Singapore dollars, while Jardine Matheson became one of the top losers by falling 1 percent to 56.40 U.S. dollars. (1 U.S. dollar equals to 1.37 Singapore dollars) Endit