Singapore stocks buck regional trend to end lower on Jan 29, STI down 0.6%

SINGAPORE - Stocks ended lower on Jan 29, bucking gains in the region.

The benchmark Straits Times Index (STI) fell 0.6 per cent, or 19.22 points, to 3,140.31. Losers outnumbered gainers 279 to 270, after 1.39 billion securities worth $961.7 million changed hands.

Key indexes in the region largely ended higher.

The Hang Seng Index gained 0.8 per cent and the Nikkei 225 was also up by a similar percentage. The Kospi Composite Index rose 0.9 per cent and the FTSE Bursa Malaysia KLCI Index climbed 0.6 per cent.

Mr Vishnu Varathan, chief economist for Asia (excluding Japan) at Mizuho Bank, noted that investors have several key events to watch in the week ahead, including the upcoming Federal Open Market Committee (FOMC) meeting.

While the Federal Reserve is expected to keep rates steady, the post-FOMC presser could still be a trigger for potentially emphatic pivot bets, he said.

Sentiments in Asia may also remain wary, due to spillover risks from China and rising political risks ahead, despite Fed pivot bets priming markets for “risk on”, he added.

“Between Fed pivot bets, persistent China (asset market) pressures and emerging political risks, markets must confront obscured outlook rather than obviated risks,” Mr Varathan said.

On the STI, Mapletree Industrial Trust was the biggest loser, falling 3.7 per cent, or nine cents, to $2.36.

On Jan 25, the real estate investment trust posted a 0.9 per cent fall in distribution per unit to 3.4 cents for its third quarter ended Dec 31, on an enlarged unit base.

The biggest gainer was Seatrium, which rose 3.9 per cent, or 0.4 cent, to 10.8 cents.

The trio of local banks ended the day in the red. DBS Bank fell 0.7 per cent, or 21 cents, to $31.89; OCBC Bank lost 0.8 per cent, or 10 cents, to $12.88; while UOB was down 0.7 per cent, or 19 cents, to $28.31.

THE BUSINESS TIMES