Regional bourses mixed but STI inches up 0.3%

Regional markets were mixed but local shares headed north a smidgeon yesterday.

The more optimistic mood among investors here helped lift the Straits Times Index (STI) 7.18 points or 0.28 per cent to 2,582.97.

Gainers outnumbered losers 237 to 185, with 1.62 billion shares worth $1.27 billion changing hands.

The STI's biggest gainer was Jardine Matheson, the holding firm for the Jardine empire, which gained 3.38 per cent to end at US$41.30.

It was followed by agri-business group Wilmar International, which rose 3.01 per cent to $4.45 on news that its Chinese unit, Yihai Kerry Arawana, responded to more queries from Shenzhen Stock Exchange over its proposed listing. Investors likely read it as the company inching a step closer to a listing, which is expected to be a share price catalyst for Wilmar.

The biggest loser was Asia retail group Dairy Farm International, which retreated 3.27 per cent to US$4.14, as expectations are for its results to be impacted by the Covid-19 outbreak.

Penny stocks in the gold-mining and healthcare sectors continued to lead in trading activity. Miner CNMC Goldmine racked up trading volumes of 110.6 million shares, with Anchor Resources not far behind on 81.5 million shares traded. Medtecs International gained 14.4 per cent with 84.8 million shares done while Hyphens Pharma added 10.38 per cent on trade of 56.5 million shares.

Bloomberg reported that a block of 734,000 shares in Hyphens Pharma traded at a market value of $477,740 yesterday afternoon, representing a 12 per cent premium from the open price.

The performance of regional markets was mixed.

Hong Kong's Hang Seng rose 0.69 per cent on hopes for a fresh United States stimulus package. But Japan's Nikkei 225 slid 0.26 per cent on caution ahead of earnings reports later this week. South Korea's Kospi ended 1.76 per cent higher with Samsung Electronics rallying as much as 5.8 per cent. China's benchmark Shanghai Composite Index added 0.71 per cent.

"The reality is that the Fed has proclaimed that they are going to keep the printing presses rolling, they will print money and it has created this all-you-can-eat buffet," Sierra Investment Management analyst Terri Spath told Agence France-Presse. "The data doesn't support this and so expect volatility, expect drawdowns going forward. The bottom may be in for the year, but we do expect volatility in the future."