Singapore stocks snap 6-day winning streak, STI down 0.1%

SINGAPORE – Local shares came off a six-day winning streak to record a slight drop on Wednesday, despite regional gains and an upbeat showing on Wall Street overnight.

As retreats go, it was pretty mild, with the Straits Times Index (STI) down 2.87 points or 0.1 per cent to 3,220.22, with gainers beating losers 291 to 254 on trade of 1.4 billion shares worth $964.8 million.

Key regional indexes from Japan to Hong Kong, China, South Korea, Australia and Malaysia all rose, thanks in part to weak data out of the United States on jobs and consumer confidence, raising hopes that the Federal Reserve may call a halt to rate hikes.

Investors are also continuing to closely monitor the situation in China, with Beijing set to release its purchasing managers’ index on Thursday. The numbers will be a good indication of how shaky the Chinese economy is.

Losses on the home front were led by the banking trio DBS Bank, UOB and OCBC Bank, which recorded declines of between 0.04 per cent and 0.06 per cent.

Frasers Centrepoint Trust inched up 0.9 per cent to $2.23. The manager said on Wednesday that the trust will divest Changi City Point mall for $338 million to an unrelated third party, with proceeds used to pare debts.

Singtel closed unchanged at $2.36 and was the day’s third most active with 26 million shares done.

The telco has reiterated its commitment to improve returns on invested capital to low double-digits by 2026, by reducing capital intensity and unlocking value from asset recycling, among other initiatives. It also wants to ramp up its new growth engines.

RHB Research said it sees “scope for more cash to be returned” with another $6 billion in assets earmarked to be recycled over the mid term.

It suggested that investors accumulate the stock on price dips. It is maintaining a “buy” rating with a target price of $3.40. THE BUSINESS TIMES