STI edges up 0.4% amid a largely lower regional showing

SINGAPORE – Local shares defied the air of doom infecting global markets to register a slight rise on Aug 8. This was despite falls on Wall Street overnight, after an early rally petered out and left all three major indexes down.

The Straits Times Index (STI) rose 0.4 per cent, or 12.11 points, to 3,261.83 points. But, for the shorter trading week, it was down 3.5 per cent. Gainers beat losers 292 to 246 across the broader market on trade of 986.5 million shares worth $1.2 billion.

Regional markets followed Wall Street’s lead. The Kospi in Seoul declined 0.5 per cent, the Nikkei 225 in Tokyo fell 0.7 per cent while Australian shares slipped 0.23 per cent.

SPI Asset Management managing partner Stephen Innes summarised the fragility of the markets, noting: “The spectre of a US economic downturn hangs heavily, stirring unease throughout the financial world.

“Simultaneously, central banks globally are out of sync, playing their own tunes and creating dissonance rather than harmony.

“Middle East... tensions (are) a mere spark away from escalating into full-blown conflicts that could send oil prices – and consequently, global inflation – skyrocketing.”

Back home, DBS Bank declined 0.2 per cent to $33.57, a day after announcing that chief executive Piyush Gupta is retiring.

Jefferies analysts commented that the announcement is expected to trigger “a modestly negative” initial share price reaction given Mr Gupta’s strong track record, but the internal candidate who is taking over should ease concerns on continuity.

OCBC Bank rose 1.1 per cent to $14.23 while UOB added 0.5 per cent to $30. Japan Foods closed 3.3 per cent up at 31 cents, after a 7.1 per cent improvement in first-quarter net profit.

THE BUSINESS TIMES