SINGAPORE (THE BUSINESS TIMES) - Fears that the contagious Delta variant of the Covid-19 virus could derail economic recovery unsettled local investors on Thursday sent shares inching down.
The uncertain mood left the benchmark Straits Times Index (STI) without much direction for the before it limped to the finish line down 0.2 per cent or 6.27 points to 3,124.19.
Gainers did manage to outpace decliners 202 to 177 on modest trade of 1.33 billion shares worth $975.4 million.
IG's market strategist Yeap Jun Rong said investors will be keeping an eye on risk factors such as the path of the virus and the upcoming United States payrolls report.
"Although there has been optimism on the vaccine front to curb the Delta variant, the vaccination progress in the region will have to see some significant pick-up to deal with the spreads," he said.
"Otherwise, Covid-19 restrictions will still remain the go-to option, delaying the pace of economic recovery."
Results were mixed elsewhere in the region. The Kuala Lumpur Composite Index rose 0.1 per cent while the Jakarta Composite added 0.34 per cent. Japan's Nikkei 225 fell 0.29 per cent, the Kospi in South Korea dipped 0.44 per cent.
Hong Kong's financial markets were closed for the observance of the Special Administrative Region Establishment Day.
Trading volumes were low in Australia as well, with the bourse closing 0.7 per cent at an eight day low.
The best performer among the STI constituents here was Yangzijiang Shipbuilding, which gained 1.4 per cent to $1.43.
Mapletree Commercial Trust was at the other end of the spectrum, falling 1.4 per cent or $2.13.
Thai Beverage was the most heavily traded by volume on the blue-chip index with 24 million shares changing hands. Its shares ended the day flat at 67.5 cents.
Singtel was the next most active counter on the STI, dipping 0.4 per cent to $2.28.
The telco announced on Thursday that it had applied for a digital bank licence in Malaysia through its joint venture with Grab, together with a consortium of other investors.
DBS was the only one of the three local banks to gain ground with the stock gaining 0.7 per cent to $30.01. UOB fell 0.2 per cent to $25.76 while OCBC shed 0.4 per cent to $11.90.
