STI continues losing streak; falls 0.5% on Dec 18

SINGAPORE – The local market continued its losing streak on Dec 18, mirroring declines on Wall Street, although regional indexes had mixed results.

The Straits Times Index (STI) was down 0.5 per cent or 20.31 points at 3,779.62, but in the broader market, gainers outnumbered losers 258 to 224 on lacklustre trade of 783.4 million shares worth $905 million.

The local banks continued their descent. DBS Bank was the biggest loser, down 1.9 per cent to $43.37, while OCBC Bank finished 0.7 per cent lower at $16.83 and UOB fell 0.7 per cent to $36.45. The STI’s top gainer was the Singapore Exchange, up 2 per cent at $12.55.

Major regional indexes were mostly up. The Kospi in Seoul climbed 1.1 per cent, Hong Kong’s Hang Seng increased 0.8 per cent and Malaysian stocks rose 0.1 per cent, but the Nikkei 225 in Japan fell 0.7 per cent.

The Australian market traded sideways after hitting a four-day high earlier in the session as investors stuck to a holding pattern until the next rate-cut decision from the US.

The US markets pulled back – the Dow Jones Industrial Average racked up its longest losing streak in nearly 47 years overnight – potentially anticipating that the US Federal Reserve will be more wary about rate cuts.

Caution seems to rule the roost, noted Mr Vishnu Varathan, head of economics and strategy for Asia at Mizuho Bank.

He added that while the Fed seems on course to reduce rates by 25 basis points, it will likely be couched in caveats about a slower pace of cuts rather than unfettered easing.

Meanwhile, China appears to be fighting bears rather than stoking bulls. Too little, too late seems to be the fear with Beijing’s policy push, and doubts remain on whether wiggle room can be exploited in a second Donald Trump presidency, he noted.

“The imminent confrontation on trade ... does not bode well for China and yuan assets,” said Mr Varathan. THE BUSINESS TIMES