Singapore market flat as global growth concerns hit sentiment

The Straits Times Index (STI) rose by 0.04 points to close at 3,294.86 yesterday amid weakened investor sentiment due to global growth concerns. Across the Singapore market, losers beat gainers 229 to 224, after 1.03 billion shares worth $1.12 billion changed hands.

Said Singapore Exchange market strategist Geoff Howie: "While the week began squarely with global inflation concerns, global growth concerns have returned back into the frame, with some mixed earnings reports in the United States and US weekly jobless claims returning to October highs on the back of Omicron infections."

He noted that the decline in US Treasury yields from Wednesday's highs has trimmed some of the gains that banks have made, with the trio of banks averaging a marginal 0.1 per cent gain this week, while maintaining 9.9 per cent gains since Dec 31.

On the Straits Times Index, Keppel Corp was the best performer, rising by 1.3 per cent to $5.38. At the bottom of the table was Yangzijiang Shipbuilding, which closed down 1.5 per cent to close at $1.32.

Singtel rose 0.4 per cent to close at $2.48 after announcing that its subsidiary, Singtel Alpha Investments,had acquired a 16.3 per cent stake in an Indonesian bank for a cash consideration of 500 billion rupiah (S$48 million).

Shares of Geo Energy were hotly traded after the company announced that three of its operating coal mines were included in the Indonesian Ministry of Energy and Mineral Resources' list of 139 coal mining companies that will be allowed to resume coal exports.

This comes after the ministry's Jan 20 announcement that the month-long ban on coal exports would be lifted for these companies upon concluding that they had met the local market sales requirements.

In the region, Japan's Nikkei 225 fell 0.9 per cent, South Korea's Kospi shed 1 per cent and the Kuala Lumpur Composite Index fell 0.1 per cent. The Jakarta Composite Index rose 1.5 per cent and Hong Kong's Hang Seng Index climbed 0.1 per cent.