Singapore stocks struggle for direction amid uncertain outlook
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Asian sentiment seems to be struggling to balance between the negative performance of Wall Street and a potential recovery led by Microsoft and Alphabet’s results.
PHOTO: ST FILE
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SINGAPORE – Mixed messages from the United States overnight gave traders here little to go on yesterday and left the local market on an even keel.
The uncertainty saw the Straits Times Index (STI) dip a tiny 0.1 per cent or 2.65 points to 3,293.91, with gainers beating losers 298 to 264, after 1.3 billion shares worth $927.9 million were traded.
Investors were swayed by a weaker overnight session on Wall Street
Regional indexes were mixed as a result. The Nikkei 225 in Japan fell 0.7 per cent, while South Korea’s Kospi shed 0.2 per cent and the Hang Seng in Hong Kong gained 0.7 per cent. The Australian bourse rallied late to close mainly flat as inflation in the March quarter dipped a little.
IG market analyst Yeap Jun Rong noted that the better-than-expected performance of both Microsoft and Alphabet on Tuesday reflected some resilience amid a downbeat environment.
“Nevertheless... lingering economic concerns and uncertainties around any spillovers from First Republic Bank continue to be something for the bulls to deal with,” he said.
First Republic Bank reported on Monday that it had lost 40 per cent of its deposits in the first quarter of the year.
That helped undermine bank sentiment here, with the three local players in the red. DBS Bank shed 0.6 per cent to $32.70, while UOB fell 0.5 per cent to $29.26 and OCBC Bank edged down 0.2 per cent to $12.60.
Mr Yeap added that Asian sentiment seems to be struggling to balance between the negative performance of Wall Street and a potential recovery led by Microsoft and Alphabet’s results, which were announced after markets closed.
Frasers Logistics & Commercial Trust was the biggest gainer on the Straits Times Index. The real-estate investment trust’s units gained 2.3 per cent to $1.33.
Ground handler Sats was at the bottom of the table, shedding 1.5 per cent to $2.60. THE BUSINESS TIMES
