Singapore stocks fall at Monday's open; STI down 0.4%

SINGAPORE shares started the week on a softer note, with the key Straits Times Index (STI) slipping 10.77 points or 0.4 per cent to 2,982.42 as at 9am.

Advancers outnumbered decliners 96 to 44, after about 79.7 million securities worth S$81 million changed hands.

Among the index stocks, Yangzijiang Shipbuilding added S$0.03 or 2.9 per cent to S$1.05, with 7.1 million shares traded, while Singtel gained S$0.01 or 0.4 per cent to S$2.47, with 2.5 million shares traded.

The trio of local lenders was down in early trade. DBS retreated S$0.09 or 0.3 per cent to S$27.33, OCBC declined S$0.05 or 0.5 per cent to S$10.68, while UOB shed S$0.22 or 0.9 per cent to S$23.98.

City Developments Limited continued its downward trajectory from last week following recent director departures, retreating S$0.23 or 3.1 per cent to S$7.12 on Monday morning.

Meanwhile, Singapore Medical Group was up 1.5 Singapore cents, or 4.6 per cent to 34.5 cents.

Other active securities included China Everbright Water which rose one Singapore cent or 4.4 per cent to 23.5 cents. This comes after the mainboard-listed firm on Sunday said its subsidiary has won a public bid for the purchase of a 65 per cent stake in a China-based water treatment firm.

Fortress Minerals surged S$0.04 or 14.3 per cent to S$0.32, after the iron ore concentrates producer and exporter on Monday posted a net profit of US$4.3 million for the three months ended Nov 30, 2020, more than five times that of US$751,151 from a year ago.

First Real Estate Investment Trust (First Reit) shed 0.5 Singapore cent or 2 per cent to 25 cents. This comes after unitholders last week raised concerns that "there are some lines being drawn among the family members", such that First Reit did not know that Lippo Karawaci was planning to negotiate the rents down.

Over on Wall Street, US stocks ended at record highs last Friday, as anticipation of more fiscal support offset poor December jobs figures.

The Dow Jones Industrial Average climbed 0.2 per cent to 31,097.97, its third straight record. The broad-based S&P 500 gained 0.6 per cent to 3,824.68, while the tech-rich Nasdaq Composite Index jumped 1 per cent to 13,201.98.

European stocks logged their strongest weekly gains since November on Friday, with Germany's DAX hitting a record high on the back of better-than-expected economic data and encouraging earnings updates from chipmakers.

The pan-European Stoxx 600 index rose 0.7 per cent to bring gains for the first week of 2021 to 3 per cent. This was driven by hopes that a Democrat sweep of the US Senate would lead to greater fiscal stimulus, and optimism that the roll-out of coronavirus vaccines will fuel a strong global recovery.

Elsewhere in Asia, Japan's market is closed for a holiday on Monday, after ending at a 30-year peak on Friday.

DailyFX strategist Margaret Yang noted in a market commentary that Asia-Pacific markets kicked off the week with a mixed tone.

Looking ahead, traders are facing a relatively quiet week in terms of macroeconomic data, Ms Yang said. She added that China trade balance will be released on Thursday, alongside Joe Biden's stimulus package plan, while the US corporate earnings season will kick off with the releases from JPMorgan, Citi and Wells Fargo.

"Friday's US retail sales, consumer sentiment and UK GDP (gross domestic product) data will be closely watched too," Ms Yang said.