Singapore shares decline amid mixed showing in Asian bourses

Tay Peck Gek

Published Wed, Jun 7, 2023 · 06:02 PM

Singapore Post shares, which have been on a downward trajectory since it announced a 70.3 per cent plunge in net profit for FY2023 in May, have hit a 52-week low at S$0.43 after dipping 2.3 per cent. PHOTO: ST FILE

SINGAPORE shares closed lower amid a mixed showing in the region bourses on Wednesday (Jun 7), as sluggish China external trade gave rise to concerns about its slower economic recovery and fuelled stimulus bets.

Singapore’s blue-chip barometer Straits Times Index (STI) was 10.53 points or 0.3 per cent lower at 3,179.58 points.

International investors turned a wary eye towards another China data shocker on Wednesday, even as the World Bank warned that the global economy faced headwinds going into 2024 due to restrictive central bank monetary policies and the possibility of more upheaval among struggling lenders.

SPI Asset Management’s managing partner Stephen Innes pointed to another downside in China data – export value declined sharply in May, significantly below consensus forecast, in both year-over-year and sequential terms.

“The data is getting framed with a tinge of geopolitical risk overtones as China’s customs commented that the decline of exports to the United States and Japan might be the potential driver behind weaker exports,” Innes noted.

The local banking trio was a mixed bag. DBS slid 0.9 per cent to S$30.89 and OCBC slipped 0.2 per cent to S$12.33 while UOB eked out a 0.04 per cent increase to S$28.13. Singapore banks were so flush with deposits that DBS was said to be loaning the central bank S$30 billion, with the most valuable counter “not finding enough opportunities to put the money to work”.

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Index stock Thai Beverage is the most active counter by volume on Wednesday morning.

Singapore stocks open little changed on Wednesday; STI up 0.04%

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The dollar index eased slightly, making gold less expensive for overseas buyers.

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Majority shareholders of consumer electronics retailer Challenger Technologies have increased their voluntary unconditional cash offer for the company to S$0.60 per share to take it private.

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Brent futures fell 42 cents, or 0.6 per cent, to settle at US$76.29 a barrel, while US West Texas Intermediate (WTI) crude fell 41 cents, or 0.6 per cent, to settle at US$71.74 on Tuesday.

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The Dow Jones Industrial Average edged up less than 0.1 per cent to 33,573.28 on Tuesday.

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Singapore Post (SingPost) shares, which have been on a downward trajectory since it announced a 70.3 per cent plunge in net profit for FY2023 in May, hit a 52-week low at S$0.43 after dipping 2.3 per cent. The postal service provider has said that it is reviewing the commercial sustainability of its domestic postal business as losses in postal operations weighed on its bottom line.

Gainers beat decliners 255 to 247 in the broader market, as about 1.1 billion securities with a total value of S$948.6 million transacted.

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