STI dips 0.2% on lack of market-moving news

Local stocks drifted through most of the session yesterday in the absence of significant market-moving developments.

The benchmark Straits Times Index (STI) ended the day mostly unchanged at 2,618.48, down 5.19 points or 0.2 per cent.

The 30 STI components were well dispersed, with 12 ending higher, 12 lower and six unchanged.

Across the wider market, gainers outnumbered losers 241 to 189, with 1.58 billion shares worth $986.66 million changing hands.

The three best performers were Mapletree Logistics Trust, which added 2.51 per cent; Sats, up 1.75 per cent; and Hongkong Land, ahead by 1.01 per cent.

The three worst were Jardine Strategic, down 2.76 per cent; Jardine Cycle & Carriage, which fell 2.69 per cent; while ComfortDelGro was 1.38 per cent behind.

Energy firm Rex International ended up 4.55 per cent at 18.4 cents, after it said Oman had given approval for its 86.37 per cent-owned unit Masirah Oil to develop the Yumna Field, while continuing to explore the rest of Block 50 Oman.

Rex also said the authorities in Norway have improved tax incentives on capital expenditure, which could benefit its 2019 Shrek discovery, where production is due to start by the end of 2024.

Elsewhere, the leading beneficiaries of the Covid-19 pandemic rebounded yesterday, after suffering steep sell-offs in recent days.

Among glove makers, Top Glove jumped 15.87 per cent to $7.52, while UG Healthcare bounced 24.24 per cent to $1.64. Safety gear supplier Medtecs International closed at 62.5 cents, up 20.19 per cent.

Regional markets were slightly up. The Hang Seng Index added 0.47 per cent, ending a tough week for Hong Kong stocks which have been hit by China-United States tensions as well as a Covid-19 flare-up.

Shanghai rose 0.13 per cent while Shenzhen gained 0.69 per cent.

South Korean shares inched up 0.8 per cent, putting the Kospi ahead 2.37 per cent for the week, its best weekly gain in six weeks.

However, Japan's Nikkei fell 0.32 per cent as Tokyo announced a fresh record of virus infections.

Eyes will be on Europe, where leaders were scheduled to begin their first face-to-face summit in five months yesterday to discuss their US$850 billion (S$1.2 trillion) rescue package. However, there are low expectations for a deal with Denmark, Sweden, Austria and the Netherlands holding out. "The frugal four may use this summit to voice their final concerns over joint debt and grants for the weaker states," said Oanda analyst Edward Moya.