STI closes lower as uncertainty rules in global markets

Uncertainty around the direction of global markets left regional investors in a bind yesterday with bourses recording mixed results.

Wall Street set the tone overnight with the Dow Jones index losing 0.5 per cent while the S&P 500 index fell 0.2 per cent and the Nasdaq ended flat.

The Singapore market responded by closing lower with the Straits Times Index (STI) down 0.4 per cent to 3,233.48. Decliners outpaced advancers 260 to 225 with 1.4 billion shares worth $992.3 million changing hands.

It was a similar story in Hong Kong, with the Hang Seng down 1.2 per cent and the Nikkei in Tokyo off 0.4 per cent but shares in Seoul and Australia rose 0.5 per cent.

Malaysian stocks closed marginally lower after former premier Najib Razak was sent to prison to serve 12 years for misappropriating millions of dollars from a company linked to 1Malaysia Development Berhad.

IG market strategist Yeap Jun Rong said some wait-and-see could be playing out in Asia markets, with the extent of sell-off easing in Wall Street.

The quiet economic calendar provided little catalysts of note, potentially reinforcing some inaction as well, he added.

Frasers Logistics and Commercial Trust came in at the bottom of the STI performance chart, sliding 2 per cent to $1.38. CapitaLand Investment was close behind, falling 1.3 per cent to $3.76.

OCBC Bank extended its two-day losing streak, closing 0.8 per cent lower at $11.99. UOB also fell, down 0.6 per cent to end at $27.35.

DBS Bank was among four STI counters that closed higher, rising 0.2 per cent to hit $32.85.

The STI's top performer was Yangzijiang Shipbuilding, which climbed 1.1 per cent to 95 cents.

In the broader market, Marco Polo Marine was the most actively traded, closing up 5.9 per cent to 3.6 cents on trade of 92.4 million.

About 19 million Singtel shares were traded after the telco reported a 41.2 per cent rise in net profit for the first quarter to $628 million from $445 million last year.