Singapore shares end largely flat on Wednesday

SINGAPORE – Local shares ended Wednesday’s low-key session largely flat after

a mixed performance on Wall Street overnight.

Trading activity was muted here as investors wind down for the New Year break, with just 826.7 million shares worth $521.1 million done.

The Straits Times Index (STI) inched up 0.02 per cent, or 0.59 points, to 3,266.97. Gainers outnumbered losers 274 to 215 on the broader market.

Wall Street stocks mostly fell on Tuesday in anticipation of more interest rate increases. The tech-rich Nasdaq dropped 1.4 per cent and the broad-based S&P 500 lost 0.4 per cent, but the Dow Jones Industrial Average eked out a slight gain, adding 0.1 per cent.

Regional stocks saw mixed trading. The Hang Seng gained 1.6 per cent, the KLCI rose 0.4 per cent, the Nikkei 225 lost 0.4 per cent, the Kospi fell 2.2 per cent and Australian shares retreated 0.3 per cent.

Mr Stephen Innes, managing partner at SPI Asset Management, said: “While a full China reopening could provide a much-needed and timely boost to the global economy, it may come with unwelcome ambiguous strings attached.”

He said inflation may subside as China reprises its role as a supplier of low-cost goods globally, easing supply chain bottlenecks. But as growth accelerates in the first quarter of 2023, China’s demand for raw materials and energy may push up commodity prices, in turn spurring inflation.

“Investors still seem sceptical of the sustainability of the recent moderation in inflation,” Mr Innes said, adding that investors are also “staying focused on the US Federal Reserve’s reaction, and whether that policy response spirals the US economy into a downturn”.

The STI’s top gainer was DFI Retail Group, which rose 3.8 per cent to US$3.02, while the biggest loser was Jardine Cycle & Carriage, down 1.2 per cent to $28.39.

The trio of local banks saw mixed trading. DBS fell 0.3 per cent to $34.20, but UOB was up 0.1 per cent to $30.96, and OCBC gained 0.2 per cent to $12.35.

THE BUSINESS TIMES