Bulls And Bears
Local stocks end lower as players await outcome of Fed meeting
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Uma Devi
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STI dips 0.2% with decliners trouncing advancers 264-180
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Regional markets close mixed, led by Kospi with 0.05% gain
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Great Eastern is top gainer while AEM leads the losers
Investors trod warily yesterday amid concerns over the usual suspects - potential tapering by the US Federal Reserve, China's property woes and Omicron.
The benchmark Straits Times Index restricted the damage to a dip of 0.2 per cent or 6.21 points to 3,114.88 with losers thumping gainers 264 to 180 on trade of 883.4 million shares worth $761.8 million.
IG market strategist Yeap Jun Rong noted that a "wait-and-see stance" would likely prevail in the region ahead of the Federal Open Market Committee meeting.
"The outcome will likely see markets scrutinising three aspects: the pace of tightening, the outlook for rate hikes and the economic forecasts," said Mr Yeap. "Thus far, market expectations may be pricing for a potential doubling of (the) tapering pace (US$30 billion, or S$441 billion), with two to three rate hikes by the end of 2022."
An outcome which suggests either a larger reduction in Fed asset purchases or a shift in policymaker support for three rate hikes next year, he added, may paint a "more hawkish outcome" that could potentially weigh on equities.
Regional markets made only slight gains at best. The Kospi added 0.05 per cent, the Nikkei 225 and the KLCI each gained 0.1 per cent while the Hang Seng fell 0.9 per cent and the ASX 200 shed 0.7 per cent.
On the local bourse, thinly-traded Great Eastern Holdings was the top gainer. It closed at $20.43, up 1.2 per cent. Jardine Cycle and Carriage was another winner, adding 0.3 per cent to $21.27.
The banks were mixed; OCBC fell 0.3 per cent to $11.29, DBS was up 0.2 per cent at $31.90 and UOB added 0.2 per cent to $26.68.
Some tech plays were among the biggest decliners. AEM Holdings led the way, falling 3.9 per cent to $5.14. Venture Corp was down 0.4 per cent at $18.50, Nanofilm Technologies shed 1.5 per cent to $3.88 and iFast lost 0.6 per cent to $8.09. Micro-Mechanics also slipped, falling 1.5 per cent to $3.30.
Disa was the most heavily traded at 72.3 million shares. It rose 25 per cent to 0.05 cent.