The Straits Times Index (STI) fell 0.33 per cent to close at 2,563.09 yesterday, as the workforce continues to feel the impact of the coronavirus pandemic on livelihoods.
DBS Group Research said yesterday that while policy measures to help vulnerable segments of society have helped to moderate job losses, "the impact on income is nevertheless far more severe".
The best performer among the index's constituents was ST Engineering, which gained 2.66 per cent for the day to close at $3.48.
This comes after the Government's announcement on Monday of the extended Jobs Support Scheme, which DBS Group Research yesterday said will deliver "a shot in the arm" to the aerospace maintenance, repair and operations sector.
Analyst Suvro Sarkar said ST Engineering's earnings trajectory for financial year 2020/21 "now looks creditably close to flattish despite the pandemic".
The biggest decliner for the day was Singtel, which lost 2.08 per cent to close at $2.35.
Advancers outnumbered decliners 218 to 210 for the day, with 1.54 billion securities worth $1.32 billion changing hands.
Across the region, Asian markets showed signs of optimism.
The Hang Seng Index edged up 0.08 per cent, while the benchmark Shanghai Composite Index gained 0.36 per cent. The Jakarta Composite Index also closed up 0.9 per cent.
South Korea's benchmark Kospi Index, however, closed down 2.46 per cent - the sharpest decline since June 15 - as worries about a surge in domestic coronavirus cases eclipsed optimism from an overnight tech-fuelled rally on Wall Street.
The Nikkei 225 Index declined for the second day in a row by 0.2 per cent.
This comes after news on Monday that Japan's economy shrank 7.8 per cent in the April to June quarter, the worst contraction in the country's modern history.
However, GlobalData economic research analyst Gargi Rao said yesterday that the Japanese economy is "set for a marginally better performance in the next two quarters, largely driven by workers who resumed their work, and opening-up of business activities".
In the United States, the Nasdaq opened at a record high yesterday, gaining 0.37 per cent at the opening bell.
The S&P 500 came within a whisker of its all-time high, rising 0.15 per cent on gains in Amazon and technology stocks.
