Wary traders on guard over more bad news about coronavirus infections sent local shares down yesterday, but the market still managed to finish the week in the black.
The Straits Times Index (STI) fell 30.83 points or 1.16 per cent to 2,634.83 as investors grew more wary that a second wave of Covid-19 infections could derail the global rebound.
Losers outnumbered gainers 220 to 205, with 1.8 billion shares worth $2.31 billion traded.
Yesterday's setback was not enough to wipe out earlier gains, allowing the STI to end the week up 0.99 per cent or 25.8 points.
Fintech platform iFAST Corp was the top gainer yesterday, surging 13.91 per cent to $1.31 after it confirmed that it is one of nine candidates shortlisted for a digital wholesale bank licence by the Singapore authorities. Up to three such licences are up for grabs.
Top loser Jardine Matheson fell 2.4 per cent to US$43.49.
UOB Kay Hian research head Adrian Loh noted this week that the rally in the STI has fizzled, but the index is unlikely to plumb new depths in the near term.
"With subdued near-term inflation and aggressive monetary policies globally, interest rates will likely remain very low for an extended period," he said.
"This may drive market multiples higher, despite deteriorating earnings estimates. We continue to believe that equities will benefit relative to cash or bonds."
While bargain-hunting in the blue-chip space has cooled, penny-stock punting was as lively as ever this week. Top active Rex International rose 2.22 per cent to 18.4 cents on volume of 94.7 million, while steel fabricator Yongnam added 15.48 per cent to 9.7 cents.
Regional markets reflected cautious optimism. The Hang Seng rose 0.73 per cent, the KLSE added 0.16 per cent, the Nikkei climbed 0.55 per cent while the Shanghai Composite advanced 0.96 per cent.
The Kospi finished 0.37 per cent higher and the S&P/ASX 200 index ended up 0.1 per cent.
On the whole, markets have been sideswiped this week on fresh contagion concerns, prompting some investors to temper their optimism about how quickly the global economy can recover from Covid-19.
"The market is looking for its next big impulse," said Mr Chuck Carlson, chief executive at Horizon Investment Services in the United States. "There are a lot of impulses in the market for investors to weigh, sift through and take into account to figure out the next direction."
• Additional reporting by Reuters
