Singapore stocks rebound, tracking regional gains

Singapore stocks rebounded yesterday, tracking gains across most regional markets. The benchmark Straits Times Index (STI) climbed 0.4 per cent or 12.11 points to close at 3,085.08, recovering some of Monday's losses.

IG market strategist Yeap Jun Rong said in a note that local stocks have not gained much traction with institutional investors over the past month, with the latest Singapore Exchange fund flow data pointing to a fourth consecutive week of net institutional outflows last week.

"This brings into question whether the rebound in early December may translate into a longer-term move," he said. The STI closed as high as 3,142.45 on Dec 9.

General trading activity was relatively muted amid the holiday season. Advancers outnumbered decliners 255 to 177 after 880.3 million securities worth $727.3 million changed hands.

Shares of Dairy Farm International - the biggest STI loser on Monday - climbed 3.8 per cent yesterday to close at US$2.73, topping the index performance table.

Thai Beverage was the biggest loser, falling 0.8 per cent to $0.655.

In the broader market, local tech manufacturers AEM Holdings and UMS Holdings were among the most actively traded non-index counters by value. AEM shares climbed 2.4 per cent to $5.13, while UMS rose 2.9 per cent to $1.43.

Elsewhere in the region, key indexes in Australia, Hong Kong, Shanghai and Japan rose between 0.9 per cent and 2.1 per cent.

"There is more uncertainty than I think most people thought we would see here as they were anticipating a Santa Claus rally," said Ms Victoria Fernandez of Crossmark Global Investments on Bloomberg Television. "Volatility and uncertainty are the key terms that will lead us into the new year."

• Additional information from Agence France-Presse