S’pore shares begin week lower as traders tread with caution; STI down 0.3%

SINGAPORE - Singapore shares began the week in the red, as investors took in news of the Israel-Hamas conflict, the resultant impact on equities globally, and rising uncertainty amid the start of the corporate earnings season.

The benchmark Straits Times Index (STI) lost 0.3 per cent, or 7.88 points, to end at 3,166.51 on Monday. Across the broader market, decliners narrowly beat advancers 279 to 277. Daily turnover came in at 1.2 billion securities worth a collective $581 million.

SPI Asset Management’s managing partner Stephen Innes said in a note on Monday that the earnings season comes at a time “when macroeconomic uncertainty affects market sentiment”.

The

ongoing

conflict in Israel

means that broader markets should veer risk-off but could possibly slide to a more wait-and-see mode, he said. “Historical analysis suggests that oil prices tend to experience sustained gains after Middle East crises. Meanwhile, stocks tend to eventually recover and trend higher after an initial period of volatility.”

On the local bourse, OCBC Bank was one of Monday’s top gainers by value. The stock, which was the top STI constituent gainer, added 0.2 per cent, or 3 cents, to close at $12.88.

The other two lenders ended the day mixed. UOB booked a gain of 0.04 per cent, or 1 cent, to $28.27, while DBS Bank fell 0.6 per cent, or 21 cents, to $33.58.

The Singapore Exchange was another top advancer, rising 0.3 per cent, or 3 cents, to close at $9.80.

Jardine Cycle and Carriage was the biggest loser, slipping 1.4 per cent, or 43 cents, to close at $30.35.

Seatrium was the most heavily traded stock for the day, with 404.7 million shares changing hands. The counter added 1.6 per cent, or 0.2 cent, to close at 12.5 cents.

Other heavily traded stocks included Rex International, Thai Beverage and Medtecs International.

THE BUSINESS TIMES