STI falls 0.16% as China's property slump stokes concern

SINGAPORE shares ended Wednesday (Dec 8) in the red as optimism from investors earlier in the week waned.

The benchmark Straits Times Index (STI) *STI closed 0.16 per cent or 4.89 points lower at 3,129.77.

This was despite outsized gains on Wall Street's 3 main indices as investors shrugged off Omicron concerns.

Across the broader market, advancers outnumbered decliners 223 to 202, after 1.11 billion securities worth S$1.04 billion changed hands.

Said senior market analyst at Oanda Jeffrey Halley: "Asian markets are having an uneven day, with gains being lesser in scope or non-existent. The chief driver of caution is the deepening woe surrounding the China property sector and its potential impact on 2022 growth.

"That said, hopes of more stimulus measures from China and falling Covid-19 cases has seen mainland equities post solid gains," he added.

With the exception of Japan's Nikkei 225, which was up 1.42 per cent, the rest of the region registered marginal gains.

Hong Kong's Hang Seng Index was up 0.06 per cent; South Korea's Kospi rose 0.34 per cent; Indonesia's Jakarta Composite Index ended 0.02 per cent higher, and Malaysia's Kuala Lumpur Composite Index slipped 0.26 per cent.

Over on the STI, the top advancer was Singtel Z74 which gained 1.2 per cent or S$0.03 to S$2.45.

Reopening plays including the Singapore Airlines (SIA) C6L and Genting Singapore G13 were also among the 6 of the 30 STI constituents that ended in the black. SIA gained 0.4 per cent or S$0.02 to S$5.01; Genting Singapore rose 0.7 per cent or S$0.005 to S$0.78.

DBS said in a report on Wednesday that Singapore's reopening stocks, such as those in the aviation and hospitality sectors, are either near bottom or have just ended their correction.

This comes as top US infectious disease expert Anthony Fauci suggested that the impact of the Omicron variant may not be as severe as initially feared.

At the bottom of the STI was Yangzijiang Shipbuilding BS6 which slipped 1.5 per cent or S$0.02 to S$1.30.

CapitaLand Integrated Commercial Trust C38U was the most heavily traded on the blue-chip index, with some 44.6 million shares changing hands. It was down 0.5 per cent or S$0.01 to S$2.04.