STI closes flat as traders play waiting game on rising Covid-19 cases, geopolitics

SINGAPORE shares closed flat after trading under water for most of the day as traders played the waiting game on many fronts - from geopolitics to worsening Covid-19 cases globally.

The key Straits Times Index closed at 2,825.63, marginally up by 0.12 points in directionless trading.

Major regional markets, except Malaysia, Taiwan and Australia, also finished lower for the day as sentiments were dampened by news that negotiations on the US stimulus package, caught up in bipartisan politics, have stalled - again.

Talking of no deals, investors are also closely watching the Brexit trade negotiations that have been flip-flopping. Concerns over a rise in Covid-19 cases globally ahead of the holiday season and US-China tension added to the factors weighing on markets.

The pullback in regional markets follows recent highs after they registered decent gains in November, said Daily FX strategist Margaret Yang in a note.

The Singapore stock market notched a significant slowdown in institutional money inflow in the first week of December, with only S$33.7 million pumped in, versus S$329.4 million in the week before, she noted, adding that a healthy correction could continue as institutional inflow slows.

"Seasonally, December is a relatively quieter month for stock trading with fewer participants and lower volatility. Some further consolidation could be underway as traders prepare themselves for the holiday season," she added.

Oil extended its losses while gold surged on expectations of some fiscal package in the US.

In Singapore, some 1.59 billion shares worth S$1.11 billion changed hands. Among the STI constituents, 15 counters were up and 12 down. Losses in DBS, UOB and Wilmar International shaved off 7.3 index points off the STI.

Medtecs International Corp jumped 9.5 Singapore cents or 10.5 per cent to S$1.00. The Catalist-listed maker of personal protective equipment (PPE) said on Monday that it has tied up with a Taiwan-listed firm, a current supplier, to possibly co-locate production plants in Taiwan, the Philippines and the US to ensure product quality and minimise supply chain disruption.

Genting Singapore gained one Singapore cent or 1.2 per cent to 85 Singapore cents, partly led by the afterglow of news that Singapore has been picked to host the annual meeting of the World Economic Forum (WEF) in May. The event will gather top political, business and academic leaders for discussions on pressing global issues.