Singapore shares fall amid mixed regional showing; STI down 0.8%

SINGAPORE – It was a lacklustre day for markets here and around the region after a mixed session on Wall Street overnight gave investors few leads.

The end-of-week blues left the benchmark Straits Times Index (STI) down 0.8 per cent, or 26.98 points, to 3,297.55. Losers beat gainers 317 to 247 across the broader market after 1.2 billion securities worth just $835.2 million changed hands.

IG market analyst Yeap Jun Rong said in a note earlier on June 14 that markets would likely look to the Bank of Japan meeting as a “final hurdle” this week. It was widely expected to keep its short-term interest rate unchanged at 0 per cent to 0.1 per cent.

The bank later voted unanimously to leave the rate unchanged. It also announced it will start to trim its bond purchases and reduce its balance sheet from July as it continues to unwind large monetary stimulus.

Markets likely interpreted the move to be dovish due to a lack of immediate details, suggesting that the central bank will be cautious in adjusting monetary policy.

Regional markets were mixed. Japan’s Nikkei 225 rose 0.2 per cent and the Kospi in South Korea added 0.1 per cent. Hong Kong’s Hang Seng fell 0.9 per cent.

Australia’s bourse recorded its worst week since mid-April and fell 0.3 per cent to leave the index down 1.7 per cent for the week.

It was a bit better on Wall Street, with tech stocks and Tesla driving the Nasdaq and the S&P 500 to new highs. The blue-chip Dow Jones Industrial Average, however, slipped for the third straight day.

DFI Retail Group was the STI’s top performer, gaining 1.1 per cent to US$1.91, while Seatrium was the worst, falling 1.8 per cent to $1.67.

The banks were in the red. OCBC Bank shed 1.1 per cent to $14.14, DBS Bank fell 1 per cent to $35.48, and UOB declined 0.7 per cent to $30.57.

THE BUSINESS TIMES