STI up 0.4% on Thursday against a largely lower regional showing

SINGAPORE shares closed higher with the Straits Times Index (STI) rising 0.4 per cent or 12.11 points to 3,261.83 on Thursday (Aug 8). In contrast, regional indexes were largely down.

The Kospi index declined 0.5 per cent to 2,556.73 points and the Nikkei 225 was down 0.7 per cent at 34,831.15 points.

Stephen Innes, SPI Asset Management’s managing partner, summarised the fragility of the markets and said: “The spectre of a US economic downturn hangs heavily, stirring unease throughout the financial world. Simultaneously, central banks globally are out of sync, playing their own tunes and creating dissonance rather than harmony.

“In the Middle East, the situation is a tinderbox, with tensions a mere spark away from escalating into full-blown conflicts that could send oil prices – and consequently, global inflation – skyrocketing. These elements converge to craft a market climate rife with volatility and unpredictability.”

DBS declined S$0.08 or 0.2 per cent to S$33.57, a day after announcing that chief executive Piyush Gupta will be retiring. Jefferies analysts commented that the announcement is expected to trigger “a modestly negative” initial share-price reaction given Gupta’s strong track record at the lender, but an internal candidate – Tan Su Shan – should ease concerns on strategy continuity.

In contrast, DBS banking peers OCBC and UOB posted increases. OCBC ended up 1.1 per cent or S$0.16 at S$14.23, while UOB rose 0.5 per cent or S$0.16 to S$30.

SEE ALSO

Asia: Stocks turn lower again as nervous traders navigate volatility

Singapore shares open lower on Thursday as DBS weakens; STI down 0.2%

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Units in Sasseur Real Estate Investment Trust (Reit) slipped S$0.015 or 2.2 per cent to S$0.67, after the Reit’s manager reported on Thursday a 5.1 per cent year-on-year decline in distribution per unit at S$0.03153 for the first half to June. Distributable income fell 2.9 per cent to S$42.7 million due to changes in the treatment of upfront borrowing costs and the manager’s base fee component.

Gainers beat decliners 292 to 246 across the broader market, with 986.5 million securities transacting at S$1.2 billion in total.

The STI was down 3.5 per cent over the shorter trading week.