STI ends week 0.14% lower amid cautious trading

SINGAPORE shares ended the week in the red as inflationary pressures and supply chain disruptions continue to weigh on sentiments.

The Straits Times Index (STI) *STI fell 0.14 per cent or 4.68 points to 3,232.34 on Friday (Nov 19).

It was, however, a quiet trading week for the STI, said Singapore Exchange market strategist Geoff Howie. With a 0.8 per cent trading range, it was the STI's second narrowest weekly range in the past five years, added Howie.

Across the market, decliners outpaced advancers 239 to 222 with 1.69 billion shares worth S$1.02 billion changing hands.

"Inflation risks remain front and centre. The numbers in the United States have pushed even higher of late, and the Fed's on the move," said HSBC co-head of Asian economics research, Frederic Neumann, in a report.

"The surge in global fossil fuel prices will inevitably drive headline prints up in the coming months. At the same time, global food prices have increased to close to a record," Neumann wrote, adding that it is no surprise that investors are starting to get worried about a burst in inflation across Asia.

UOB noted in a report that the Restaurant Association of Singapore had already sounded out that food and beverage players are facing cost pressures due to a combination of labour shortages, higher energy prices and supply chain disruptions.

"Business margins are squeezed, and there could be more cost pass through to consumers in the future," said UOB.

Elsewhere in the region, key benchmarks were buoyed by optimism over pandemic recovery, and have temporarily shrugged off inflation woes.

This is with the exception of Hong Kong's Hang Seng Index which shed 1.07 per cent after Alibaba's shares sank 10.7 per cent.

Meanwhile, Japan's Nikkei 225 rose 0.5 per cent; South Korea's Kospi gained 0.8 per cent; the Kuala Lumpur Composite Index was up 0.11 per cent and the Jakarta Composite Index ended 1.26 per cent higher.

Over on the STI, Hongkong Land H78 was the largest gainer, advancing 1.1 per cent or US$0.06 to US$5.78.

At the bottom of the table was Yangzijiang Shipbuilding BS6 which declined 1.6 per cent or S$0.02 to S$1.26. It was also the most heavily traded counter on the blue-chip index with 23.7 million shares changing hands.