Singapore stocks fall amid caution ahead of US inflation report; STI down 0.6%

SINGAPORE shares fell on Wednesday (Jan 10) alongside most key regional bourses following Wall Street’s overnight losses and ahead of the much-awaited US inflation data.

The Straits Times Index (STI) lost 18 points or 0.6 per cent to 3,179.96, after US stock indices fell overnight with the tech rally petering out and as US banks kick off the earnings season on Friday.

Except for Japan which climbed to fresh three-decade highs, key gauges from Hong Kong, China and South Korea to Malaysia and Australia all finished lower.

Given the relatively quiet economic calendar ahead, sentiment remains muted, with all eyes on the US inflation report on Thursday to provide cues for market direction, said Yeap Jun Rong, market analyst at IG. 

Across the broader market, turnover in the local bourse came in at 1.06 billion securities worth S$946 million. Losers outnumbered gainers 315 to 206.

Losses were led by banking stocks. DBS fell S$0.36 or 1.1 per cent to S$32.51, UOB slipped S$0.28 or 1 per cent to S$28.23, while OCBC retreated S$0.05 or 0.4 per cent to S$12.83.

SEE ALSO

Singapore shares decline at Wednesday’s open; STI down 0.4%

Tokyo: Shares hit near 34-year high on tech gain, weaker yen

Asia: Markets drop again as traders prepare for CPI, earnings

Singapore Airlines jumped S$0.11 or 1.7 per cent to S$6.54. CGS-CIMB Research upgraded the stock from “reduce” to “add”, citing re-rating catalysts from strong passenger demand and rising cargo yields amid falling jet fuel prices. The house has raised its target price for the counter to S$6.91 from S$5.47.

Delfi retreated S$0.02 or 1.8 per cent to S$1.10. The midstream consumer company is benefiting from the consumption recovery across South-east Asia on the back of stronger consumer spending, accelerating economic growth and tourism recovery, said RHB Research. The house has a “buy” recommendation on the counter with a target price of S$1.55.