Singapore shares buck regional trend to close lower; STI falls 0.4%

SINGAPORE – Local shares did not share in the optimism on regional markets and dipped on June 11 over concerns surrounding the US-China trade talks. The lack of detail over any agreement generated some unease here and helped send the benchmark Straits Times Index (STI) down for the second straight session.

Shares fell 0.4 per cent or 14.75 points to 3,919.05, although in the broader market gainers thumped losers 310 to 183 on trade of 1.1 billion securities worth $1.2 billion.

Venture Corp was the STI’s top gainer, rising 1.2 per cent to $11.38, while ST Engineering led the losers, falling 1.9 per cent to $7.71.

The local banks ended lower: DBS Bank dipped 0.6 per cent to $44.87; OCBC Bank dropped 0.7 per cent to $16.16; and UOB shed 0.4 per cent to $35.12.

The declines here were in contrast to Wall Street overnight and regional bourses’ performance.

Stocks in New York rose steadily on hopes the trade talks in London will yield results.

The S&P 500 added 0.5 per cent, its sixth gain in seven sessions, and is now just 2 per cent below its all-time high after rallying 21 per cent from the lows of April’s tariff crash. The Dow Industrials put on 0.2 per cent and Nasdaq rose 0.6 per cent.

Most regional markets rose, with South Korea’s Kospi up 1.2 per cent. Greater China stocks also advanced, with Hong Kong’s Hang Seng up 0.8 per cent. Australian shares closed 0.06 per cent ahead after hitting another all-time high earlier in the day.

Investors are now looking ahead to a key US bond auction. The results will be keenly watched for an instant read on the scope of demand, at a time when investor appetite for 30-year US debt has soured.

“A lack of demand for US government debt would impede the rally’s momentum and throw a bone to the bears,” said Mr Jose Torres, senior economist at Interactive Brokers, on recent gains in American equities.

THE BUSINESS TIMES