STI closes nearly flat, while regional indexes end mixed

Singapore's benchmark Straits Times Index ended at 2,863.01 yesterday, just 3.33 points or 0.12 per cent higher than the day before, in its response to the run-off elections for two seats in the United States Senate in the state of Georgia and the jump in oil prices.

Some 2.37 billion securities worth $1.29 billion changed hands, with advancers outnumbering decliners by 299 to 166.

Top index performer, conglomerate Sembcorp Industries, added five cents or 2.91 per cent to $1.77. This was as analysts anticipated the outperformance of US infrastructure plays in mining, construction and renewables - in response to an expected "blue sweep" scenario in the Georgia run-offs.

The Singapore Exchange was the worst performer, declining 10 cents or 1.03 per cent to $9.60, correcting from exuberant gains recorded on Monday on possible profit-taking.

The most active counter of the day was Sembcorp Marine - for the third consecutive day. It gained 1.2 cents or 8 per cent to 16.2 cents, on a volume of 416.4 million, more than triple its trading volume on Tuesday. This was likely in response to the oil price rally to above US$50 per barrel.

Mr Terence Chua, an analyst at Phillip Securities Research, said that investors are also likely still expecting a merger announcement with Keppel's offshore and marine unit by mid-January.

Axi chief global market strategist Stephen Innes noted that Saudi Arabia's additional voluntary cuts of oil production for February and March - explained as a gesture of goodwill to accelerate global oil inventories' drawdown - was a clear near-term positive for oil.

This was the first time West Texas Intermediate crude oil prices crossed the US$50-a-barrel mark since February last year.

Regional indexes finished mixed. The Hang Seng Index gained 0.15 per cent and the Shanghai Composite Index added 0.63 per cent, while Japan's Nikkei 225 extended losses, declining 0.38 per cent. Malaysia's KLCI shed 1.02 per cent.