Regional investors seemed stuck in limbo yesterday seeking signs of certainty regarding a stimulus package in the United States while also keeping a wary eye on the looming presidential election there.
Local shares reversed gains in the morning session to close 0.1 per cent or 3.03 points lower at 2,525.61. Losers outnumbered gainers 243 to 182 with 1.32 billion shares worth $1.25 billion changing hands.
AxiCorp's chief global markets strategist Stephen Innes said: "It was evident from the get-go in Asia that a distinct reflationary theme was building, confirming that hope for near-term stimulus is growing.
"The market is in a repetitive mode as traders try to shake the final mind-war around inaccurate polls," he said.
There is also talk that there has been too much focus on United States' fiscal stimulus packages, which has fuelled investor optimism over the past few weeks.
"The one lesson we can take is that the US fiscal stimulus package remains the only thing financial markets are concentrating on, to the exclusion of everything else," noted Oanda Asia-Pacific senior market analyst Jeffrey Halley.
"I will reiterate the risks though, of material corrections in asset markets if negotiations or the US Senate disappoint."
Glovemakers were among the biggest losers for the day.
Shares of Riverstone Holdings fell 4.9 per cent to $3.69, Top Glove lost 5.5 per cent to $2.93 while UG Healthcare shed 7.5 per cent to 92.5 cents. Medical apparel maker Medtecs International lost 6.3 per cent to end the day at $1.19.
Among the constituent stocks, City Developments emerged the biggest decliner after its non-executive and non-independent director Kwek Leng Peck left the company following disagreements with its board and management.
The counter closed 7.2 per cent lower at $7.08.
At the other end of the spectrum, Jardine Matheson Holdings rose 1.3 per cent to US$42.49 while stablemate Jardine Strategic Holdings closed at US$20.68, up 1.62 per cent.
The trio of lenders ended the day mixed. OCBC Bank gained 0.5 per cent to $8.75, UOB finished 1.5 per cent higher at $19.92 while DBS Bank fell 0.2 per cent to $21.25.
Wall Street made gains overnight as optimism over stimulus deals fuelled investor sentiment but regional markets ended the day mixed. Malaysian shares lost 1.2 per cent lower and the Shanghai index fell 0.1 per cent but the Nikkei 225 in Tokyo rose 0.3 per cent and the Hang Seng advanced 0.8 per cent.
