S'pore shares edge up ahead of Fed meeting

Local shares inched up yesterday in line with much of the region, although investors were intent on keeping their powder dry until the US Federal Reserve met overnight.

The muted day's trade left the Straits Times Index (STI) at 2,800.57 points - with a small gain of 0.23 per cent, or 6.4 points.

Gainers outnumbered losers 268 to 196 with 1.63 billion shares worth $1.54 billion traded.

Mr Stephen Innes, Axicorp's chief global market strategist, said: "While uncertainty ahead of this week's (Fed) meeting is likely to keep bullish ambitions at bay at the moment, it does not feel like investors need much of an excuse to sit on their hands."

The best performer among the STI constituents was United Overseas Bank, which added 1.94 per cent to $23.10. The local lender's share price has been trending upwards since early this month and Citi recently upgraded the counter - as well as the other two local banks - to a "buy", with a target price of $25.

Jardine Cycle & Carriage, which went ex-dividend on Monday, was at the bottom of the table of the STI's worst performers for the second day in a row. It declined 1.4 per cent to $22.54.

Sembcorp Marine was among the most heavily traded by volume yesterday after topping the table on Tuesday. The counter closed down 1.6 per cent to 61 cents, with 42 million shares changing hands, as investors come to grips with a move by parent Sembcorp Industries to de-merge from the marine giant.

The lacklustre market here yesterday was in line with markets elsewhere, with traders holding back after several weeks of bullish activity, driven by hopes that the global economy will bounce back once lockdowns are scaled back.

The increasingly cautious mood is also leading to safe havens such as gold gaining more investor support.

Japan's Nikkei 225 was up 0.15 per cent, while South Korean shares rose for the ninth straight session, with the Kospi ahead 0.31 per cent to its highest close since Feb 19.

It was much the same in Australia - the index edged up 0.1 per cent to its highest since March 6, with gold miners thriving on moves by investors to get to safer havens.

Malaysian shares rose 0.01 per cent, but Hong Kong's Hang Seng Index ended marginally lower, snapping a seven-day winning streak.

Indonesian stocks plunged after a record surge in virus cases was reported, while Philippine stocks tumbled on worries that a multibillion-dollar stimulus package might be running into political turmoil.