Sembcorp, Keppel lead STI decline amid news of cap on wholesale electricity prices

SINGAPORE – Singapore stocks ended lower on Tuesday, led by declines in Sembcorp Industries and Keppel Corp. The benchmark Straits Times Index (STI) fell 0.7 per cent, or 20.94 points, to 3,220.23. Losers outnumbered gainers 304 to 220, after 1.2 billion securities worth $1.1 billion changed hands.

Shares of Sembcorp and Keppel fell amid heavy trading, after the Energy Market Authority said it will introduce a temporary cap on wholesale electricity prices. At the close, Sembcorp lost 9.2 per cent, or 52 cents, to $5.15, with 24.4 million shares worth $127.5 million having changed hands. Keppel ended 5.2 per cent, or 36 cents, lower at $6.60, after eight million shares worth $53.5 million were traded.

Across the broader market, ComfortDelGro was actively traded. It ended 0.9 per cent, or one cent, higher at $1.15. The transport operator on Tuesday said it would implement

a 70-cent platform fee from July

for rides booked via its CDG Zig app so that it can continue to improve the quality of its point-to-point transport services.

These were among other related announcements made by taxi and ride-hailing companies on Monday, among which was the extension of a temporary taxi fare hike until June 30, 2024.

The trio of local banks traded mixed on Tuesday. DBS Group Holdings gained 0.1 per cent, or four cents, to $31.15, and UOB rose 0.3 per cent, or eight cents, to $27.90. OCBC Bank lost 0.2 per cent, or three cents, to $12.56. The bank on Monday said it had

upped its stake in insurance subsidiary Great Eastern

to 88.4 per cent from 87.9 per cent.

Elsewhere in the region, key indices were mixed. The Hang Seng Index fell 1.5 per cent, and the Kospi Composite Index lost 0.2 per cent. The Nikkei 225 and the FTSE Bursa Malaysia KLCI Index rose 0.1 per cent each.

IG market analyst Yeap Jun Rong noted that a meeting

between US Secretary of State Antony Blinken and Chinese President Xi Jinping

on Monday marked “a baby step in the right direction” for warmer US-China ties, although the absence of any concrete developments, and a still-firm tone from China suggest a need for greater clarity. Nevertheless, there is optimism that the meeting at least opens the way to more bilateral meetings or even hope of a Biden-Xi summit later this year, Mr Yeap said. Mr Yeap expects the US markets will be back online on Tuesday to set a clearer backdrop for the risk environment, after having been closed for a holiday on Monday.

THE BUSINESS TIMES

Amendment note: An earlier version of this article incorrectly said ComfortDelGro would also raise starting fares for its Premium, XL and XL Kids services. It is Gojek that is doing so.