Singapore shares inch higher amid muted trading volumes

Singapore shares climbed marginally higher yesterday, in line with the moderate gains seen across most of the region.

The benchmark Straits Times Index (STI) rose 0.1 per cent or 2.43 points to close at 3,087.51, while in the region, Hong Kong, Japan, South Korea and Australia were up between 0.1 and 0.6 per cent.

Oanda senior market analyst Jeffrey Halley noted that Asian markets have taken a more cautious approach even though the US markets had a strong overnight rally with investors buying the dip.

"With pre-holiday liquidity tumbling, and market direction entirely dominated by headline-derived volatility, it is probably not wise to get too wedded to 'the worst is over' just yet," he said.

Trading volumes in the local market remained muted, with gainers outnumbering losers 207 to 205, after 844 million shares worth $696.8 million changed hands. Shares of Thai Beverage topped the STI performance table, gaining 1.5 per cent to close at 66.5 cents.

Travel and aviation-related counters were among the losers in the local market after the Government announced tighter border safeguards, with new ticket sales suspended for vaccinated travel lane flights and buses into Singapore from today to Jan 20 next year.

Singapore Airlines shares fell 1 per cent to close at $4.84, Genting Singapore slipped 0.7 per cent to close at 75.5 cents, while Sats closed at $3.80, down 0.3 per cent.

Thinner trading volumes heading into the Christmas holidays could exacerbate market swings, while markets continue to be shadowed by escalating mobility curbs to fight the Omicron variant and a diminishing stimulus tailwind.

But the global reopening narrative will in time gain traction again, Ms Nicole Webb, Wealth Enhancement Group senior vice-president, said on Bloomberg Television.