The rally that galvanised investors for two days this week came to an abrupt halt yesterday as pessimism again took hold.
The souring mood sent the Straits Times Index (STI) down 32.45 points to 2,539.44, with 22 of its 30 counters finishing in the red. Losers outpaced gainers 233 to 200, with 1.46 billion shares worth $1.26 billion traded.
The weaker showing followed a late dip on Wall Street overnight as investors had reservations about whether the slower rate of Covid-19 infections can be sustained.
Markets are also assessing whether the largest oil-producing countries will strike a deal this week to cut output and bring the supply glut to an end.
While China's lifting of a 76-day lockdown on Wuhan city is a positive, recovery from the coronavirus will be long-drawn, said experts.
Mr Stephen Innes, AxiCorp's chief global markets strategist, noted: "While this is another sign that activities are normalising, the impact might last longer, as unemployment levels may be slow to normalise after many small businesses were forced into bankruptcy."
Benchmarks in China, Hong Kong, Malaysia, South Korea and Thailand finished down, but Japan's Nikkei 225 Index was a notable gainer, adding 2.1 per cent.
The Singapore Exchange (SGX) was the best-performing STI constituent, adding 2.2 per cent to $9.79. Recent market volatility sent equity turnover and derivative contract volumes surging last month and it could continue this month and beyond, noted Citi Research analyst Robert Kong. Citi has raised its target price of the bourse operator from $9.60 to $10.80.
Genting Singapore remained the most actively traded, closing 2.8 per cent up, with 63.1 million shares changing hands.
Among real estate investment trusts (Reits), Mapletree Logistics Trust ended 1.8 per cent higher at $1.66 after DBS Group Research upgraded the trust to "buy".
But CapitaLand Mall Trust (CMT) fell 2.3 per cent to $1.70.
OCBC Investment Research said the Covid-19 Temporary Relief Bill is likely to cast overhang on near-term outlook and put a strain on CMT's cash flow, but it noted that the Reit has "sufficient undrawn credit facilities to sustain itself at least until the end of the year..."
Yesterday saw the first dual listing on the New York Stock Exchange and the SGX when AMTD International debuted on the SGX mainboard at $13.95. It closed at $16.
