Singapore stocks lose ground despite jump in exports

Local shares retreated alongside most regional peers yesterday after robust export data failed to put investors in a buying mood.

The Straits Times Index (STI) dipped 0.19 per cent or 6.12 points to 3,232.68. In the broader market, losers outpaced gainers 259 to 176 on trade of 1.69 billion shares worth $1.15 billion.

The weaker showing came despite Singapore posting higher exports for October.

"The ongoing strength in non-electronic shipments supports the resilience in overall non-oil domestic exports towards supply chain disruption and the slowing growth in China," said IG market strategist Yeap Jun Rong. "That said, after surging as much as 9 per cent from its September bottom, the Singapore index may be seeing some near-term distribution after the catalysts from economic reopening and earnings season have been priced in."

Elsewhere, investors struggled to track overnight gains on Wall Street. New York's three main indexes ended higher amid a strong set of retail sales data and positive earnings from shopping giants.

The data suggests consumers are willing to absorb increased costs for now, with higher wages and a positive economic outlook offsetting price concerns, said Mr Yeap.

Investors in Asia are spooked by rising inflation that could prompt the US Federal Reserve to act sooner to keep prices in check.

Hong Kong's Hang Seng Index fell 0.25 per cent, South Korea's Kospi sank 1.16 per cent and Japan's Nikkei 225 dipped 0.4 per cent. Meanwhile, the Kuala Lumpur Composite closed 0.15 per cent higher and the Jakarta Composite was up 0.37 per cent.

The STI's best performer was Yangzijiang Shipbuilding, up 1.6 per cent at $1.29. UOL Group led the losers, down 1.5 per cent at $7.08. Singtel was the most heavily traded on the blue-chip index with 27 million shares changing hands. Its shares fell 0.8 per cent to $2.52.