Singapore shares dip on cautious sentiment; STI down 0.7%

SINGAPORE – Local shares mirrored a lacklustre Wall Street overnight and declined on Dec 6 as wary traders opted to keep their powder dry ahead of a crucial US jobs report that will determine interest rate policy.

The cautious stance left the benchmark Straits Times Index (STI) down 26.52 points, or 0.7 per cent, at 3,796.16 after a near record high the day before. In the broader market, gainers outnumbered losers 270 to 246 on trade of 1.1 billion securities worth $1.1 billion.

Yangzijiang Shipbuilding was the STI’s top gainer, rising 1.9 per cent to $2.69, while Singtel was the biggest decliner, falling 2.9 per cent to $3.03.

The three local banks ended the session mixed: DBS slid 1.3 per cent to $43.68; UOB lost 0.7 per cent to close at $36.88; but OCBC gained 0.2 per cent to $16.40.

US jobs data that was set to be released could help shape the direction of the Federal Reserve’s interest rate decision later in December.

The wariness over which way the Fed might go knocked the three major indexes off their record highs.

The Dow Jones Industrial Average, which closed above 45,000 points for the first time on Dec 5, lost 0.6 per cent, while the tech-focused Nasdaq and the S&P 500 each declined about 0.2 per cent.

Chinese stocks gained after Wall Street banks projected that China’s central bank is set to deliver its biggest interest-rate cuts in a decade.

Hong Kong’s Hang Seng Index was up 1.6 per cent, and the Shanghai Composite was 1.1 per cent higher. Other key regional indexes declined in line with Wall Street’s dip – Japan’s Nikkei 225 lost 0.8 per cent and Malaysian shares fell 0.2 per cent.

The Australian bourse finished 0.6 per cent lower, with every sector bar utilities retreating after the Wall Street rally lost momentum and oil prices slid lower.

South Korea’s Kospi was down 0.6 per cent amid ongoing political tensions in the country. THE BUSINESS TIMES