Singapore stocks fall tracking Wall Street retreat; STI down 0.5%
Yong Jun Yuan
SINGAPORE shares were in the red on Friday (Jan 6), mirroring a decline in US equities overnight, even as regional markets turned in a mixed performance.
The Straits Times Index (STI) shed 0.5 per cent or 15.94 points to close at 3,276.72. Across the broader market, gainers beat losers 288 to 253, after 1.04 billion securities worth S$1.02 billion changed hands.
In the US, all three major indices closed lower, with the tech-heavy Nasdaq leading the fall with a 1.5 per cent drop.
Among regional markets, South Korea’s Kospi climbed 1.1 per cent, Japan’s Nikkei 225 rose 0.6 per cent, and the Jakarta Composite Index advanced 0.5 per cent.
However, Hong Kong’s Hang Seng Index fell 0.3 per cent, while the Kuala Lumpur Composite Index edged down 0.03 per cent.
SPI Asset Management managing partner Stephen Innes said markets remain predominantly focused on US recession risk.
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“In contrast to current market pricing, conversations suggest there is an increasingly vocal community who do not expect the Fed to cut rates this year, which is providing the current tailwind for the US dollar,” he said.
Still, Innes added that some stocks are being buoyed by the relaxation of China’s Covid-19 policies and the peaking of new cases there, with some traders expecting a faster and more rigorous recovery as Chinese policymakers focus on generating growth.
On the STI, DFI Retail Group was the top performer. The counter gained 5.7 per cent or US$0.17 to close at US$3.18. CapitaLand Investment was at the bottom of the table, falling 4.4 per cent or S$0.17 to close at S$3.69.
The trio of local banks were mixed on Friday. DBS shed 0.9 per cent or S$0.31 to close at S$34.47, while UOB slipped 0.4 per cent or S$0.13 to S$30.84. However, OCBC gained 0.5 per cent or S$0.06 to S$12.50.
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