STI drifts lower despite rallies elsewhere

A 120-point jump in the Dow futures, a strong session in Hong Kong and a firm opening for Europe failed to lift the local stock market on Monday. Instead, the Straits Times Index (STI) drifted to a loss of 0.05 of a point - although the consolation was that the broad market did manage 214 rises versus 192 falls, excluding warrants.

No reasons could be found for the lethargy that resulted in low turnover of 1.4 billion units worth S$884.4 million. For the rally in other markets, however, the explanation offered was the relief that North Korea celebrated its founder's day without fresh missile launches.

Among the day's most active counters were the shares of media and property firm Singapore Press Holdings, which publishes The Business Times. The stock finished with a S$0.12 or 4.4 per cent loss at S$2.62 on heavy selling of 19.3 million shares. There was no fresh announcement to account for the fall, but a possible reason was a Friday downgrade by CIMB, which had cited downside risks and a S$2.38 target price.