STI falls 0.5% alongside key regional bourses on profit taking

SINGAPORE shares snapped two straight days of gains and closed lower on Wednesday, with Budget 2021 generally deemed by equity analysts as a relatively non-event, compared to last year's bonanza.

The key Straits Times Index finished at 2,920.43 after retreating 14.91 points or 0.51 per cent.

Key gauges in Japan, South Korea and Australia corrected after a strong run in recent sessions. Malaysia also closed lower; Hong Kong posted gains. Markets in mainland China remain closed on Wednesday for the Chinese New Year holidays.

Overnight in Wall Street, two key equity indices retreated slightly after traders grabbed the chance to book profits as US Treasury yields spiked. Rising yields are being led by inflationary concerns, given the imminent big US fiscal stimulus and global recovery as vaccine roll-outs pick up pace in many countries.

On the local bourse, turnover stood at 1.99 billion units worth S$1.06 billion. Losses were led by the Jardine stocks, Thai Beverage and Singtel. Among the STI constituents, 19 counters posted losses. Eight counters closed up.

Singapore Airlines (SIA) slipped one Singapore cent or 0.23 per cent to S$4.39. Under the latest Budget, the airline is set to continue to enjoy the benefits of the government's wage support scheme for another six months till September, which will result in cost savings.

HRnetGroup Ltd outperformed the STI, gaining one Singapore cent or 1.75 per cent to 58 Singapore cents. CGS CIMB Research said the recruitment and staffing firm will likely benefit from the extension of the Jobs Growth Incentive (JGI) unveiled in Budget 2021, given that the government is revving up the hiring of 200,000 workers in 2021.