Bulls And Bears

STI snaps eight-session winning streak

Traders take profit day after index breaks through milestone 3,000-point mark

SGX Centre 1 at Shenton Way Road in the Raffles Place District.
SGX Centre 1 at Shenton Way Road in the Raffles Place District.PHOTO: ST FILE

Local shares retreated yesterday to break an eight-session winning streak after traders took profit.

The benchmark Straits Times Index (STI) lost 5.08 points or 0.17 per cent to 3,000.94. Turnover across the bourse came up to 1.75 billion shares worth $1.19 billion.

The slip came a day after the index broke through the milestone 3,000-point mark for the first time in 14 months - making it one of the best-performing markets globally to date this year.

Property group Hongkong Land was among the biggest laggards on the STI, dropping 25 US cents or 3.6 per cent to US$6.67, while Global Logistic Properties shed four cents or 1.6 per cent to $2.51.

Gainers included ground handling firm Sats, which rose nine cents or 1.8 per cent to $5.03, and Golden Agri-Resources, up half a cent or 1.2 per cent to 43 cents.

Outside of the blue chips, offshore contractor Emas Offshore sank 0.3 cent or 3.6 per cent to eight cents after posting a net loss of US$2.2 million (S$3.2 million) for the first quarter ended last Nov 30, compared with a net loss of US$3.2 million a year earlier.

Emas warned of a going concern issue arising from delays in the settlement of disputes relating to a US$43 million put option with its collapsed Malaysian associate Perisai Petroleum Teknologi. The firm's parent Ezra Holdings fell 0.1 cent or 1.9 per cent to 5.1 cents.

Offshore support vessel firm Pacific Radiance jumped 0.8 cent or 5.7 per cent to 14.8 cents after announcing after market close on Tuesday that it had secured US$68 million in multi-year contracts in the Middle East.

ISDN Holdings shed half a cent or 1.9 per cent to 26.5 cents. It called for a trading halt in the morning, before announcing that it has received "robust demand" for the public tranche of its shares as part of its dual primary listing in Hong Kong. A total of 40 million new shares will be issued at HK$1.25 apiece.

The most active was Natural Cool Holdings, which shot up 4.1 cents or 33.3 per cent to 16.4 cents on 122.7 million shares done.

Elsewhere, Wall Street eased further overnight, losing 0.16 per cent, weighed down by the fall in oil prices as traders remained cautious ahead of US President-elect Donald Trump's first press conference.

"There are underlying expectations that Trump's tax cuts and infrastructure spending will boost the US economy, which should support markets," Sumitomo Mitsui Asset Management's senior strategist Masahiro Ichikawa told Reuters.

However, "if he takes a hardline stance on China, in line with his campaign promises, then China would probably take counter-measures, raising concerns about tensions between the US and China".

Markets in Asia ended broadly higher, with Tokyo gaining 0.33 per cent, Hong Kong up 0.84 per cent and Seoul rising by 1.47 per cent. Shanghai fell 0.79 per cent.

A version of this article appeared in the print edition of The Straits Times on January 12, 2017, with the headline 'STI snaps eight-session winning streak'. Subscribe