STI dips 0.11% amid investor jitters in the US

SINGAPORE shares ended lower on Wednesday, amid broad selling across Asia and Wall Street fuelled by concerns about higher inflation and slower growth.

The Straits Times Index (STI) *STI fell 0.11 per cent or 3.38 points to 3,074.31.

Across the broader market, decliners outpaced advancers 256 to 194 after 1.98 billion securities worth S$1.19 billion changed hands.

"The upshot of the overnight US data, CARES Act hearing and divide on the US debt ceiling, saw 10-year US Treasury yields close above 1.5 per cent, reaching highs not seen since June 17," said Singapore Exchange market strategist Geoff Howie.

"This meant the banks were among the more defensive today, on the steeper yield curve, with DBS, OCBC and UOB averaging flat returns," he added.

The iEdge S-Reit Index, on the other hand, fell 0.9 per cent on the decline in the premium of real estate investment trust yields to 10-year US Treasury yields, he noted.

The trio of local banks ended Wednesday mixed. DBS D05 gained 0.5 per cent or S$0.15 to S$30.11; OCBC O39 dipped 0.4 per cent or S$0.04 to S$11.46; UOB U11 shed 0.2 per cent or S$0.04 to S$25.59.

Sembcorp Industries U96 led gains among the STI constituents, with shares rising 2.7 per cent or S$0.05 to S$1.89.

The biggest decliner on the blue-chip index was Mapletree Logistics Trust M44U , falling 1.5 per cent or S$0.03 to S$2.03.

Genting Singapore G13 was the most active counter by volume on the STI with over 30 million shares changing hands. Its shares ended the day flat at S$0.72.

Elsewhere in the region, financial markets were also rattled by investor jitters in the United States. Tokyo's Nikkei 225 fell 2.12 per cent; Seoul's Kospi dipped 1.22 per cent.

Hong Kong's Hang Seng Index, however, gained 0.67 per cent as concerns about troubled property giant Evergrande eased; the Kuala Lumpur Composite Index and Jakarta Composite Index too shrugged off the equity sell-off elsewhere, ending the day 0.05 per cent and 0.81 per cent higher respectively.