SINGAPORE, May 7 (Reuters) - Singapore shares were headed south on Wednesday, on course for their biggest decline in more than a week, as worsening tensions in Ukraine weighed on investor sentiment in the region and curbed risk appetite.
The benchmark Straits Times Index fell 0.4 percent to 3,231.60, while MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.8 percent.
The losses were led by Golden Agri-Resources Ltd and Thai Beverages Ltd, as both dropped 1.6 percent.
Shares of marine and offshore engineering group Sembcorp Industries Ltd were flat, after gaining in early trading after the company’s earnings report on Tuesday showed first-quarter net profit rose 5 percent from the same period last year.
OCBC maintained its “buy” rating on the Sembcorp stock while lowering the target price to S$6.17 from S$6.42, citing expectations of a steady performance amid intense competition in the Singapore power market.
“Going forward, Sembcorp Industries’s pipeline of projects is expected to increase its power capacity by more than 70 percent and its water and wastewater treatment capacity by more than 20 percent over the next three years, enhancing recurring earnings,” the brokerage said in a note on Wednesday. (Reporting by Andrew Toh; Editing by Anupama Dwivedi)