Broader market continues rally despite index heavyweights weighing down the STI
On the index, DFI Retail Group continues to rally, ending the day as the top gainer
THE Straits Times Index (STI) closed lower on Friday (Sep 27) as regional indices showed mixed results.
The STI was down 0.3 per cent or 8.87 points at 3,573.36.
Across the broader market, advancers outnumbered decliners 404 to 244 after 1.6 billion shares worth S$1.9 billion changed hands.
On the STI, DFI Retail Group continued to rally, ending Friday as the top gainer. It closed up 9.5 per cent or US$0.19 at US$2.18.
The trio of local banks ceded their gains from earlier this week, with DBS the second-biggest loser on the STI. It was down 1.8 per cent or S$0.70 at S$37.60. OCBC lost 0.8 per cent or S$0.12 to S$15.11, and UOB was down 0.4 per cent or S$0.14 at S$32.22.
Yangzijiang Shipbuilding was the biggest loser, closing down 6.3 per cent or S$0.17 at S$2.51 on Friday.
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Across the region, major indices ended the day mixed. South Korea’s Kospi lost 0.8 per cent, while Hong Kong’s Hang Seng Index continued to rally, gaining 3.6 per cent. Malaysia’s KLCI was down 0.7 per cent.
The recent Chinese stimulus package has swung sentiment from despondency to delirium in the Chinese markets, noted Vishnu Varathan, head of macro research at Mizuho Securities. Now, a rekindled risk appetite has investors devouring all things China, from equities to currency.
“While still short on the granular details, this is as close as Beijing gets to guns blazing,” said Varathan.
He added that this bullish tide has spilled over to global equities and risk sentiments elsewhere. This has resulted in Wall Street being rising by a range of 0.4 to 0.6 per cent.
“Nonetheless, it is Beijing’s party, and a few stiff data points that question the need for aggressive Fed easing will not stand in the way,” said Varathan.
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