Singapore stocks open flat ahead of Georgia election results; STI up 0.01%

SINGAPORE shares were little changed at Wednesday's open as traders awaited the outcome of key elections in Georgia that will determine the balance of power in Washington.

The muted start also comes after the benchmark Straits Times Index (STI) climbed 0.03 per cent on Tuesday, on what some market commentators called a "lacklustre" trading day.

The STI inched up 0.18 point or 0.01 per cent to 2,859.86 as at 9.01am on Wednesday.

Gainers outnumbered losers 89 to 25, after 64 million securities worth about S$41 million changed hands.

The most active counter by volume was Sembcorp Marine, which gained 0.5 Singapore cent or 3.3 per cent to 15.5 cents, with 28.4 million shares traded.

The trio of banking stocks were mixed in early trade. DBS slipped S$0.02 or 0.1 per cent to S$25.33, UOB fell S$0.02 or 0.1 per cent to S$22.55, but OCBC put on S$0.01 or 0.1 per cent to S$10.07.

Ascendas Real Estate Investment Trust was up S$0.02 or 0.7 per cent to S$2.99, while City Developments Limited (CDL) shed S$0.03 or 0.4 per cent to S$7.63.

Earlier this week, CDL announced that a third director, Tan Yee Peng, has resigned over concerns about the company's investment in Chinese real estate developer Sincere Property Group. Separately, CDL has also set up a special working group to improve Sincere's liquidity and profitability.

Meanwhile, Great Eastern lost S$0.23 or 1.2 per cent to S$19.81. The insurer on Wednesday said Great Eastern Life Assurance will be redeeming early all of its S$400 million 4.6 per cent subordinated notes due 2026.

Over on Wall Street, US stocks advanced on Tuesday following better-than-expected US economic data, and as investors eyed key Senate elections in Georgia that could determine the direction of fiscal stimulus and domestic tax policy.

The Dow Jones Industrial Average gained 0.6 per cent to 30,391.60, the broad-based S&P 500 climbed 0.7 per cent to 3,726.86, while the tech-rich Nasdaq Composite Index jumped 1 per cent to 12,818.96.

European stocks closed slightly lower on Tuesday, as the UK went back into a national lockdown aimed at curbing the surge in Covid-19 infections. The pan-European Stoxx 600 index fell 0.2 per cent, with a rally in energy shares offset by losses in utilities and media stocks.

Elsewhere in Asia, Tokyo stocks opened lower on Wednesday as the Japanese government prepared to declare a fresh state of emergency to fight the coronavirus, while in South Korea, the Kospi topped 3,000 for the first time.