STI ends almost flat as market faces reality check
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The Straits Times Index ended with a gain of just 0.02 per cent or 0.57 point to 3,314.05.
ST PHOTO: KUA CHEE SIONG
Uma Devi
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SINGAPORE – Local shares closed on a dour note on May 20, with the benchmark index trading sideways as investors mulled over the possibility of interest rate cuts and other macroeconomic concerns.
The Straits Times Index (STI) ended with a gain of just 0.02 per cent or 0.57 point to 3,314.05.
Across the broader market, advancers outpaced decliners 333 to 271. Daily turnover was at 1.2 billion securities worth $899 million.
Regional stock markets mostly ended the day in the black as traders shrugged off macroeconomic worries and inflation concerns.
The Nikkei 225 rose 0.7 per cent, the Hang Seng Index added 0.4 per cent, and the Bursa advanced 0.7 per cent. The ASX 200 and Kospi each added 0.6 per cent.
Market watchers said all eyes remain on China, and Asian markets are likely to take their cue from the global economic powerhouse.
Mixed macroeconomic data from China shows that the country’s recovery from the Covid-19 pandemic remains “unbalanced”, said Bank of Singapore chief economist Mansoor Mohi-uddin in a note. The mixed data is spurring “new easing”, he said.
“The latest news shows officials are placing a high priority on supporting the economy’s weaker links, and China’s markets are reacting positively,” he added.
Jardine Matheson Holdings was the top gainer on the STI, rising 1.2 per cent to US$39.81. DBS Bank was another notable gainer, advancing 0.3 per cent to $35.80.
The other two local lenders ended the day in the red. UOB shed 0.1 per cent to $30.24, while OCBC Bank lost 0.2 per cent to $14.41.
ST Engineering was the biggest constituent loser for the day. The stock lost 1.9 per cent to $4.15 on a cum dividend basis. Keppel was another top decliner, shedding 0.6 per cent to $6.73. THE BUSINESS TIMES
