S’pore shares end flat amid mixed Asian trading as investors digest China’s monetary easing plans

SINGAPORE – Local shares flatlined on Dec 13 amid a lethargic session on Wall Street overnight and news of China pledging further measures in the face of looming trade tensions with the US.

The Straits Times Index (STI) did eke out a rise of 0.03 per cent, or 1.08 points, to 3,810.35, but across the broader market, losers outnumbered gainers 276 to 199 on trade of 793.5 million securities worth $910.2 million.

Yangzijiang Shipbuilding topped the STI and was among the most actively traded, rising 2.5 per cent to $2.88 with 35.2 million shares transacted.

The index’s biggest loser was Jardine Matheson, down 2.6 per cent to US$43.29.

Banks were mixed: UOB rose 0.3 per cent to $37.35, OCBC Bank declined by 0.2 per cent to $16.76, while DBS Bank fell 0.1 per cent to $43.74.

RHB said on Dec 13 that a potential DBS or OCBC takeover of Bank Pan Indonesia would add 2 per cent to 3 per cent to their bottom lines. DBS and OCBC are said to be among the Asian banks interested in buying the Jakarta-listed lender.

Other Asia-Pacific markets were mixed. Japan’s Nikkei 225 slid 1 per cent and Australian shares dipped 0.4 per cent to be down 1.5 per cent for the week, its worst in four months.

However, the Kospi in Seoul was up 0.5 per cent and Malaysian stocks climbed 0.4 per cent.

Chinese shares sank despite the news of more stimulus. Hong Kong’s Hang Seng and the Shanghai Composite were both down 2 per cent.

China’s Central Economic Work Conference has pledged to increase the Budget deficit, issue more debt and loosen monetary policy to prepare for increased US trade tensions.

ANZ Research noted on Dec 13 that this was not a “new deal”, adding that the steps look more like a policy recap of recent stimulus measures.

“On the monetary policy front, the change of... stance to moderately loose is a belated confirmation of moves since September.”

THE BUSINESS TIMES