Singapore stocks flat amid regional declines; STI down 0.1%

SINGAPORE - Local stocks traded flat on Tuesday amid softer trading sentiment in the region.

The Straits Times Index (STI) fell 0.1 per cent, or 1.89 points, to 3,306.86.

Across the broader market, gainers narrowly beat losers 241 to 240 after 1.63 billion securities worth $781.41 million changed hands.

While SPI Asset Management managing partner Stephen Innes attributed some of the weak market sentiment to adjustments to investors’ interest rate expectations, he believes that markets are also closely observing China’s recovery and the recent underperformance of Chinese equities.

Still, he said that given the higher growth differential between China and the United States, lower starting valuations and better earnings expectations of Chinese companies, it will take “little more” than improving macroeconomic data for investors to turn bullish again.

Across the broader region, major Asian markets were mixed on Tuesday. Hong Kong’s Hang Seng Index fell 1.7 per cent, while Japan’s Nikkei 225 declined 0.2 per cent and South Korea’s Kospi gained 0.2 per cent.

On the STI, the top performer was Yangzijiang Shipbuilding, which gained 2.3 per cent to $1.31.

Meanwhile, Keppel DC Reit was at the bottom of the table, shedding 1 per cent to $1.97.

The trio of banks were also in the red. DBS shed 0.2 per cent to $34.86, while OCBC fell 0.1 per cent to $13.04 and UOB declined 0.1 per cent to $30.65.

In the broader market, shares of Sembcorp Marine rose by more than 10 per cent to close Tuesday at 12.8 cents amid heavy trading volumes.

Sembmarine had fallen to its lowest level in three months on Monday, days after shareholders overwhelmingly voted for a $4.5 billion merger of their company with Keppel Corporation’s subsidiary Keppel Offshore and Marine.

Shares of Keppel closed Tuesday at $7.14 a share, up 0.56 per cent.