Bulls And Bears

STI recovers losses on positive China data

But worries over Trump's policies keep traders on edge, with Dow down overnight

SGX Centre 1 at Shenton Way Road in the Raffles Place District. PHOTO: ST FILE

Singapore stocks yesterday recouped their losses, likely helped by further signs of stabilisation in the Chinese economy.

The Straits Times Index (STI) climbed 20.69 points or 0.68 per cent to 3,067.49.

New data from China showed manufacturing in the world's second-largest economy grew slightly faster than expected in January.

Elsewhere in Asia, Tokyo added 0.56 per cent and Sydney put on 0.57 per cent. Seoul and Jakarta each rose 0.62 per cent. Hong Kong slipped 0.18 per cent as it caught up with losses in overseas markets after the Chinese New Year holiday. Shanghai and Taipei were closed.

Still, worries over US President Donald Trump's policies continued to keep traders on edge, sending Wall Street 0.54 per cent lower overnight on a softer greenback. The US Federal Reserve is expected to leave interest rates unchanged at its meeting yesterday, although its statement will be closely watched for any reading on the new presidency.

"We assumed President Trump would not implement some of his wilder ideas. However, there is nothing that suggests he will be holding back on many of his campaign promises," ABN Amro chief economist Han de Jong said in a note.

"Most economists agree that full-blown protectionism will cause significant economic damage, both to the countries at which protectionism will be targeted and the US itself. So this is not looking too good."

At home, 23 of the 30 STI constituents finished stronger, while three fell and four were unchanged.

Of the local lenders, OCBC Bank gained nine cents or 1 per cent to $9.48 and United Overseas Bank edged up six cents or 0.3 per cent to $20.98. But DBS Group Holdings shed nine cents or 0.5 per cent to $18.88.

Property giant CapitaLand rose eight cents or 2.4 per cent to $3.37.

Outside the STI, Ascendas India Trust advanced one cent or 1 per cent to $1.06 after it posted a 5 per cent increase in third-quarter distribution per unit to 1.42 cents.

Beauty product seller Best World International climbed one cent or 0.5 per cent to $1.84.

This came as DBS initiated coverage on the stock with a "buy" call and a $2.36 target price. It said the company's "strong earnings momentum will likely be sustained by further cultivation of existing networks in its stronghold in central and southern Taiwan, and plans to leapfrog into the northern region".

Moya Holdings Asia requested a trading halt in the afternoon, pending an announcement. The stock last traded at 6.2 cents, 0.6 cent or 10.7 per cent higher than the previous day's close.

Equation Summit was again the day's most active counter, jumping 0.2 cent or 7.7 per cent to 2.8 cents on 200.3 million shares done.

A total of 1.9 billion shares worth $1.22 billion changed hands across the bourse.

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A version of this article appeared in the print edition of The Straits Times on February 02, 2017, with the headline STI recovers losses on positive China data. Subscribe