STI down 0.1% amid rebound in regional markets

Office workers walking at Raffles Place Park within the heart of Singapore's financial centre in the CBD area on November 1, 2022.  The Straits Times
Office workers walking at Raffles Place Park within the heart of Singapore's financial centre in the CBD area on November 1, 2022.  The Straits Times

SINGAPORE – Most of the region enjoyed a mid-week rebound on Wednesday on the back of a positive session on Wall Street overnight, but local shares failed to get the memo.

A lacklustre trading day sent the Straits Times Index (STI) down a modest 0.1 per cent or 3.57 points to end at 3,255.99.

Gainers outstripped the losers 282 to 240 in the broader market after 1.1 billion shares worth $822.8 million changed hands.

Regional markets took their cue from Wall Street, where the S&P 500 surged 1.4 per cent after dovish remarks from the United States Federal Reserve officials took some of the heat out of inflation fears heading into the festive shopping season.

Lower levels of trading due to the World Cup and the United States Thanksgiving holidays this weekend also kept volatility in check.

Japan’s Nikkei 225 continued its climb through the week, gaining 0.6 per cent, Hong Kong’s Hang Seng Index added 0.6 per cent, and the Kospi in South Korea rose 0.5 per cent. The Jakarta Composite Index advanced 0.3 per cent while the Kuala Lumpur Composite edged up 0.2 per cent.

Australian shares enjoyed a robust session, with all sectors bar real estate and tech in the black. The 0.7 per cent increase left the ASX 200 at its highest close since June 3.

The STI’s best performer was Jardine Matheson, which gained 2.5 per cent to finish at US$48.52. Pan-Asian retailer DFI Retail Group was at the bottom of the table, ending the day down 3.2 per cent at US$2.41.

The three local banks had a mixed session: DBS Bank lost 0.6 per cent to close at $35.36, OCBC Bank dipped 0.1 per cent to $12.42, while UOB edged up 0.1 per cent to $30.15.

IG market strategist Yeap Jun Rong said the STI’s recent peak at 3,320 was met with some selling pressure, as “technical conditions moderated from overbought levels”.

“That said, the near-term upward bias remains intact for now, with potential support at the 3,230 level,” he added. BUSINESS TIMES

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