Singapore stocks end largely flat on July 24 amid regional declines

SINGAPORE – Local shares closed flat on July 24 while regional markets mostly ended in the red after a lacklustre session on Wall Street overnight.

The low-key trading day left the benchmark Straits Times Index (STI) down a modest 0.01 per cent or 0.34 points to 3,460.82, with losers outnumbering gainers 292 to 265 on trade of 1.2 billion securities worth $935.5 million.

Bourses elsewhere in the region went south. The Nikkei 225 in Tokyo lost 1.1 per cent, Hong Kong’s Hang Seng fell 0.9 per cent, the Kospi in Seoul slid 0.6 per cent and Malaysian shares were down 0.5 per cent. Australia’s market ended flat.

The declines tracked overnight losses on Wall Street, where investors have been distracted by the presidential election turmoil.

The tech-heavy Nasdaq slipped 0.1 per cent, while the S&P 500 slid 0.2 per cent and the Dow Jones Industrial Average dropped 0.1 per cent.

Mr Aaron Chwee, head of wealth advisory at OCBC, noted that shares of American chipmakers led the declines, as the rebound in mega-cap technology stocks lost steam.

He added that earnings took centre stage as the US Federal Reserve is in a blackout period ahead of its July 31 interest-rate decision.

Profit expectations are high for the “Magnificent Seven” tech giants following stellar earnings cycles over the past year.

Investors will likely heavily scrutinise management outlooks relative to elevated valuations. Meanwhile, the market is also dealing with a shift to small caps, Mr Chwee noted, adding: “Investors should ensure they remain diversified as market volatility is likely to be heightened by the US presidential election campaign.”

Yangzijiang Shipbuilding was the STI’s biggest gainer, rising 3.9 per cent to $2.41, while Jardine Cycle & Carriage led the losers, falling 1.6 per cent to $25.45.

The local banking trio ended mixed. DBS fell 0.03 per cent to $36.74, OCBC lost 0.3 per cent to $15.11, while UOB gained 0.1 per cent to $32.88. THE BUSINESS TIMES