Singapore stocks fall, tracking Wall St retreat; STI down 0.5%

SINGAPORE – Wall Street’s declines overnight left investors looking for leads on Friday in what has been a rocky week.

Results were mixed across the region but the red ink was on full display here with the Straits Times Index (STI) shedding 0.5 per cent or 15.94 points to close at 3,276.72, a disappointing result after Thursday’s robust rise.

Gainers beat losers 288 to 253 after 1.04 billion units worth $1.02 billion changed hands.

It was hot and cold elsewhere following sharp falls on all three key Wall Street indices after a strong jobs report sparked new fears of more interest rate rises.

South Korea’s Kospi climbed 1.1 per cent, the Nikkei 225 in Tokyo rose 0.6 per cent and the Jakarta Composite advanced 0.5 per cent.

But Hong Kong’s Hang Seng Index fell 0.3 per cent, while the Kuala Lumpur Composite edged down 0.03 per cent.

Australian stocks rose 0.7 per cent to a two-week high although most sectors fell.

SPI Asset Management managing partner Stephen Innes said markets remain predominantly focused on the recession risk in the United States.

“In contrast to current market pricing, conversations suggest there is an increasingly vocal community who do not expect the Fed to cut rates this year, which is providing the current tailwind for the US dollar,” he added.

Still, Mr Innes noted that some stocks are being buoyed by the relaxation of China’s Covid-19 policies and the peaking of new cases there, with some traders expecting a faster and more rigorous recovery as Chinese policymakers focus on generating growth.

DFI Retail Group was again the top performer on the STI. The counter gained 5.7 per cent to close at US$3.18.

CapitaLand Investment was at the bottom of the table, falling 4.4 per cent to $3.69.

The trio of local banks were mixed.

DBS shed 0.9 per cent to close at $34.47 and UOB slipped 0.4 per cent to $30.84, but OCBC gained 0.5 per cent to $12.50. THE BUSINESS TIMES