Singapore shares dip, bucking regional rally

SINGAPORE - A regional rally failed to prevent the local market from sinking ever so slightly into the red on Jan 25 with investors searching in vain for some inspiration.

The uncertain mood here left the Straits Times Index (STI) down 0.2 per cent or 5.69 points at 3,147.64 with losers nipping ahead of gainers 281 to 268, and 1.4 billion shares worth $920.2 million changing hands.

Singapore Airlines was the STI’s biggest gainer, climbing 1.7 per cent to $6.64, while real estate investment trust Mapletree Logistics Trust trailed the blue-chip field, sliding 4.3 per cent to $1.56.

Seatrium continued to be the most actively traded by volume this week, with 139.2 million shares done. The counter was down 0.9 per cent to 10.5 cents.

Other regional bourses ended in the black after a positive session on Wall Street overnight, with the “Magnificent Seven” tech stocks driving key indexes higher, including the S&P 500, which racked up its fourth straight record close.

The tech surge pushed Microsoft to a US$3 trillion (S$4 trillion) market cap.

South Korea’s Kospi and Japan’s Nikkei 225 were both up 0.03 per cent while the ASX 200 climbed 0.5 per cent to a three-week high before the Australia Day holiday on Jan 26.

Hong Kong’s Hang Seng rose 2 per cent and the Shanghai Composite added 3 per cent.

IG market analyst Yeap Jun Rong said the Hang Seng is attempting to pare earlier losses on the latest announcement by the Chinese authorities.

China’s central bank had said that it will cut the amount of cash that banks are required to hold as reserves from February.

However, he was of the view that the index’s showing might not be sustained: “As we have seen over the past year, intermittent bounces on supportive policies have failed to sustain, which may potentially mean more of the same this time round.”

THE BUSINESS TIMES