Singapore shares fall on Wednesday, STI down 0.2%

SINGAPORE – A mix of mostly positive data in the United States left regional markets unimpressed on Wednesday as investors scouted around for leads.

Easing yields on US bonds spurred hopes that interest rate rises would be on hold while some good corporate results gave Wall Street a boost overnight, but that was not enough for traders here, who left the Straits Times Index (STI) flat.

The index dipped 0.2 per cent, or 5.1 points, to 3,078.78, with gainers pipping losers 300 to 298 after 1.2 billion shares worth a modest $800 million were traded.

Key regional markets were mixed after Wall Street’s positive lead.

Japan’s Nikkei 225 index added 0.7 per cent and the Hang Seng in Hong Kong rose 0.6 per cent, but South Korea’s Kospi fell 0.9 per cent.

Australian shares pared losses to close flat. This was despite higher-than-expected inflation data sparking fears of more interest rate rises.

IG market analyst Yeap Jun Rong noted that softening US 10-year Treasury yields and falling oil prices could benefit the Asia-Pacific region.

However, investors may also be conflicted as they digest mixed US tech results along with a strengthening greenback, he said.

Meanwhile, he added that lukewarm figures from the US flash Purchasing Managers’ Index (PMI) data will likely add to hopes that the US economy will have a soft landing.

“The takeaway is that US economic conditions have stabilised in October after months of decline, as US services PMI turned higher for the first time in five months while the manufacturing sector halted its contractionary trend,” Mr Yeap said.

Genting Singapore was the STI’s top gainer, rising 3.6 per cent to 85.5 cents, while UOL led the losers, falling 2.9 per cent to $5.73.

The local banks were mixed.

DBS closed unchanged at $33.15, while UOB gained 0.2 per cent, or six cents, to $27.72. OCBC climbed 0.6 per cent, or seven cents, to $12.84.

THE BUSINESS TIMES