Signs of progress in the US-China trade talks kicked some life into many regional markets yesterday, but local investors were unmoved.
The lack of enthusiasm nudged the Straits Times Index (STI) down 0.01 per cent or 0.47 point to 3,277.91, with the 201 gainers pipping the 190 losers on trade of 1.34 billion shares worth $1.16 billion.
The banks were not much help to the STI yesterday. DBS Bank led the losses, down 1.08 per cent to $24.81 on trade of six million shares.
More news emerged yesterday that DBS will transfer its retail equity trading under DBS Vickers to the bank by the end of the year, leaving the securities and derivatives arm to serve institutional clients.
One remisier said some of his colleagues aged 62 or older are "anxious about the job they have been doing for the past 20 to 30 years", while others voiced concerns over the new job scope.
But some brokers watching from the sidelines said they saw the change coming.
Maybank Kim Eng's Mr Thilan Wickramasinghe said the moves are consistent with DBS' intention to return to its commercial banking roots to develop interest and wealth management incomes.
Moreover, he believes that the traditional retail broking business, which uses self-employed remisiers, is "declining" as retail customers move to online trading.
Perhaps some of the nervousness has spread to OCBC Bank and United Overseas Bank, both of which announce fourth-quarter earnings today.
OCBC was down 0.86 per cent to $11.57, also on trade of six million shares, while United Overseas Bank closed unchanged at $25.98 with two million shares changing hands.
Downward pressure also came from ST Engineering, whose fourth-quarter profit dropped 26 per cent after one-off charges and missed analyst expectations. The counter closed 1.59 per cent down at $3.71 with about 12 million shares traded.
Property group City Developments posted a 54.7 per cent fall in fourth-quarter earnings, but the counter rose 0.11 per cent to $9.54.
OCBC analyst Andy Wong said the results were in line with expectations, adding that CDL plans to launch five projects in Singapore this year.
DBS Equity Research initiated coverage on EC World Reit yesterday with a "buy" call and an 86-cent target price.
Analysts believe the firm, which reports results today, is an underappreciated stock trading at attractive valuations. Its units closed unchanged at 74.5 cents.
