STI reverses two-day gain to end 0.93% lower

SINGAPORE stocks snapped their two-day winning streak on Wednesday, amid a pull-back in Treasury yields that sent technology stocks roaring back to life on Wall Street on Tuesday.

Said Stephen Innes, chief global market strategist at Axi, on Wednesday: "Stocks snap back on softer yields, but given the immense macro forces at play, a great day in Nasdaq is hardly a trend."

The benchmark Straits Times Index (STI) fell 0.93 per cent or 28.81 points to 3,079.72. On the broader market, decliners outnumbered advancers 241 to 234, with 2.91 billion securities worth S$1.71 billion changing hands.

Frencken Group was among the top counters of the day that made gains in terms of value, rising 2.38 per cent or S$0.03 to close at S$1.29.

DBS Group Research said in a note on Wednesday that near-term downside for semiconductor stocks AEM Holdings, UMS Holdings and Frencken - which have been affected by the sell off in tech stocks - are limited, and that the sector "should stage a rebound soon".

"There is limited upside for (the US 10-year Treasury yields)," it said, adding that the industry momentum "continues to be bullish with the ongoing shortage of semiconductor chips and US semiconductor equipment billings are on an uptrend".

Among the STI constituents, Yangzijiang Shipbuilding emerged as top performer for the day, gaining 4.55 per cent or S$0.05 to close at S$1.15.

Meanwhile, DBS finished Wednesday at the bottom of the index, sliding 3.5 per cent or S$1.01 to end at S$27.84.

The other two local lenders also ended the day in the red. UOB fell 1.32 per cent or S$0.34 to close at S$25.36; OCBC closed down 1.1 per cent or S$0.13 at S$11.67.

Across the region, Asian markets ended the day mixed.

The Nikkei 225 Index edged up 0.03 per cent or 8.62 points to end at 29,036.56, the Hang Seng Index gained 0.47 per cent or 134.29 points to close at 28,907.52.

Meanwhile, South Korean shares closed lower for a fifth straight session. The benchmark Kospi fell 0.6 per cent or 18 points to 2,958.12.