S'pore shares close flat as traders take wait-and-see approach

Singapore shares closed flat after trading under water for most of the day as traders played a waiting game on many fronts, from geopolitics to the worsening Covid-19 situation globally. The key Straits Times Index closed at 2,825.63, marginally up by 0.12 point in directionless trading.

Major regional markets, except Malaysia, Taiwan and Australia, ended lower as sentiment was dampened by news that negotiations on the United States' stimulus package have stalled again. Investors are also watching the flip-flopping Brexit trade talks closely.

Concerns over a rise in Covid-19 cases globally ahead of the holiday season and US-China tension added to the factors weighing on markets.

The pullback in regional markets follows recent highs after they registered decent gains last month, said Daily FX strategist Margaret Yang in a note.

The Singapore stock market saw a significant slowdown in institutional money inflow in the first week of December, with only $33.7 million pumped in versus $329.4 million the week before, she noted. "Some further consolidation could be under way as traders prepare for the holiday season," she added.

Oil extended its losses while gold surged on expectations of a fiscal package in the US.

In Singapore, some 1.59 billion shares worth $1.11 billion changed hands. Among the STI constituents, 15 counters were up and 12 down. Losses in DBS Bank, UOB and Wilmar International shaved 7.3 index points off the STI.

Medtecs International jumped 9.5 cents or 10.5 per cent to $1. The Catalist-listed maker of personal protective equipment said on Monday it has tied up with a Taiwan-listed company to possibly co-locate production plants in Taiwan, the Philippines and United States.