STI slips 0.5%, ending two straight days of gains

SINGAPORE (THE BUSINESS TIMES) - Singapore shares traded directionless and ended two straight days of gains, with the Straits Times Index (STI) down 14.38 points, or 0.51 per cent, at 2,825.51 on Monday (Dec 7).

The retreat in the local bourse echoed the pattern in Japan, Hong Kong and China, which all closed lower by between 0.8 per cent and 1.2 per cent. South Korea, Taiwan, Australia and Malaysia posted gains.

Trading sentiment at the start of the week appeared cautious on geopolitical concerns - Reuters said the US was preparing to impose sanctions on some Chinese officials - while oil prices fell on news of the rising number of Covid-19 cases.

Even so, the vaccine roll-out will continue to bolster hopes that the deadly pandemic could soon be under control.

CIMB private banking economist Song Seng Wun said he expects market participants to continue to focus on the long-elusive US stimulus deal this week, following signs over the weekend that momentum on the negotiations was picking up.

On the docket are notable US macro releases, including the latest consumer and producer price data. This, plus another batch of industrial production and foreign trade data, as well as third-quarter gross domestic product growth figures out of the euro zone and Japan, will be closely watched.

In Singapore, 2.33 billion shares worth $1.47 billion changed hands.

Among the STI constituents, 10 counters were up and 19 down. Singapore's three banks led the losses.

Singtel, which together with Grab was given a licence to run a digital full bank here, closed seven cents, or 3 per cent, up at $2.41.

Sembcorp Marine topped the day's most active with 234 million shares worth $39.3 million done. The counter fell 0.7 cent, or 4.09 per cent, to 16.4 cents.