SINGAPORE – The regional rally ignited by yet more gains on Wall Street overnight left local investors unmoved on Dec 20.

Their muted response to the “Santa rally” mood elsewhere left the benchmark Straits Times Index (STI) down 0.3 per cent or 8.59 points to 3,108.03, although gainers slipped ahead of losers 288 to 257 after 1.02 billion shares worth a relatively paltry $745.3 million changed hands.

Major Asia-Pacific markets were well in the black after surging optimism about the United States economy fired up Wall Street and propelled the Dow Jones Industrial Average ahead 0.7 per cent and to its fifth record in as many days.

The tech-heavy Nasdaq also added 0.7 per cent, while the S&P 500 put on 0.6 per cent. Hong Kong’s Hang Seng responded by gaining 0.7 per cent, Japan’s Nikkei 225 rose 1.4 per cent and South Korea’s Kospi climbed 1.8 per cent.

Australia was a standout, with the market up 0.7 per cent to hit a fresh 10-month high that is now only a smidgeon below its record level. Volume was huge as well, with turnover of A$8.65 billion (S$7.77 billion), despite many traders now on holiday.

SPI Asset Management managing partner Stephen Innes noted: “Without a tablespoon of doubt, investors are encouragingly acknowledging that inflation has experienced a notable decline across most major economies from the peak observed last year.

“Notably, this has occurred without the need for a recession.

“Consequently, financial markets are currently basking in anticipation of a more festive holiday season, revelling in the optimism of profitable Santa rally cheer.”

Offshore and marine company Seatrium was the top gainer in the STI, rising 1.9 per cent to 11 cents, while Yangzijiang Shipbuilding was at the bottom of the table, down 3.5 per cent to $1.40.

The trio of banks was also in the red. OCBC Bank fell 0.2 per cent to $12.45, DBS Bank shed 0.4 per cent to $31.53 and UOB declined 0.6 per cent to $27.52. THE BUSINESS TIMES