STI inches up 0.3% on Dec 16, bucking regional trend

SINGAPORE - The Straits Times Index (STI) closed up on Dec 16, while major regional indexes closed lower.

The STI rose 0.3 per cent, or 10.68 points, to 3,821.03. Across the broader market, decliners outnumbered advancers 333 to 183, after 866.9 million shares worth $1.1 billion changed hands.

The trio of local banks had mixed results on Dec 16, with OCBC Bank being the top gainer on the STI – closing up 1.4 per cent, or 24 cents, at $17. DBS was the next top gainer, rising 1.3 per cent, or 57 cents, to $44.31, while UOB was down 0.4 per cent, or 15 cents, at $37.20.

The biggest loser was Jardine Matheson, declining 2.5 per cent, or US$1.08, to US$42.21.

Across the region, major indexes were down, with South Korea’s Kospi falling 0.2 per cent, Hong Kong’s Hang Seng Index dipping 0.9 per cent and the FTSE Bursa Malaysia KLCI declining 0.1 per cent. Japan’s Nikkei 225 closed flat.

The Chinese retail sector reported sales growth rising to just 3 per cent year on year, the slowest pace in three months and a fall from the 4.8 per cent surge in October.

In contrast, industrial output slightly outperformed expectations, up 5.4 per cent, a reflection of the slight but steady industrial resilience likely due to export front-loading, noted Mr Stephen Innes, managing partner at SPI Asset Management.

The CSI 300 index retreated slightly, and investors’ trepidation was expressed in the benchmark 10-year yield dipping to an all-time low of 1.7 per cent.

While the spectre of renewed trade tensions looms large, Chinese policymakers have pledged to “forcefully lift consumption”.

“Yet, despite these vocal commitments, the actual road map remains murky, with Beijing continuing to shy away from more radical fiscal stimuli, such as direct cash injections into consumer pockets – often dubbed as ‘helicopter money’,” said Mr Innes.

THE BUSINESS TIMES