STI drops 0.2% amid weak market sentiment

SINGAPORE – Regional bourses enjoyed a modest rally on Wednesday on the back of optimism over interest rates in the United States, but local shares went a smidgeon south amid an air of caution.

The wary mood here sent the Straits Times Index dipping 0.2 per cent or 6.2 points to 3,192.87, although gainers easily outpaced losers 333 to 223 on the broader market after 1.3 billion shares worth $899.1 million changed hands.

Key regional markets went the other way and ended in the black after a positive session on Wall Street overnight and talk of further Chinese stimulus.

Malaysia’s Bursa added 0.1 per cent, the Nikkei 225 in Tokyo put on 0.6 per cent, Hong Kong’s Hang Seng Index gained a robust 1.3 per cent and the Kospi in Seoul shot up 2 per cent.

Australian stocks racked up their fifth straight day of gains, rising 0.7 per cent to a three-week high.

The regional gains came after solid results on Wall Street – the third consecutive positive session – on hopes that interest rates may have hit their peak. Economic data over coming days will give a clearer picture but indications are that the Federal Reserve will stay its hand.

China holds promise as well, with one observer noting that “there’s also been strength in resource stocks amid rumours that the Chinese government might launch a substantial stimulus package”.

Electric vehicle maker Nio was Wednesday’s top gainer here, adding 3.7 per cent to close at US$8.80.

Frencken Group was another leading advancer, advancing 7.4 per cent to $1.16. The stock was also among the most actively traded for the day, with 8.8 million shares done.

Jardine Matheson Holdings was the day’s biggest loser, shedding 5.1 per cent to US$42.92.

The local banks failed to set the market on fire: DBS Bank lost 0.7 per cent to $33.72, and UOB fell 0.2 per cent to $28.50. OCBC Bank closed flat at $13.

THE BUSINESS TIMES