STI snaps 2-day losing streak, posts marginal 0.21% gains

SINGAPORE shares managed to stem a two-day losing streak, to close marginally above water on Thursday, though not without a struggle, following a negative cue from Wall Street overnight and inflation fears.

The key Straits Times Index inched up 6.75 points or 0.21 per cent to 3,238.07 and is up nearly 14 per cent in the year to date.

Key regional peers closed mixed, with main gauges in Japan, Hong Kong and China posting gains; the bourses in Malaysia, Australia, South Korea and Taiwan ended lower.

The US' consumer price index data for October came in hotter than expected, with a broad-based rise in prices across all main categories, chiefly in transport-related, energy, food and housing. This followed higher consumer price and factory-gate prices released by China.

"Inflation ticks up in both US and China - and that's a tricky combo," remarked Wellian Wiranto, economist at OCBC Bank. He added: "As producers deal with greater cost pressure, margins would be the first to suffer, but eventually, they will be forced to pass the burden on to consumers.

"China is the world's largest exporter, commanding over 15 per cent of global exports. Hence, any price pass-through from there will add to global inflation concerns. For Asean economies - to whom China is the biggest exporter by miles - that introduces a potentially nasty risk of imported inflation."

Some 1.41 billion units worth S$1.15 billion were traded in the local bourse. Gainers outpaced losers, with 263 counters up and 194 down.

Singapore Press Holdings (SPH) and Keppel Corp, as well as units of SPH Reit and Keppel Reit, drew much trading interest after Keppel said it would raise its privatisation offer for SPH. SPH and Keppel Reit turned up on the list of the day's top 10 most active counters, with 31 million shares traded.

SPH jumped S$0.15 or 6.94 per cent to S$2.31; SPH Reit fell S$0.01 or 0.98 per cent to S$1.01. On the other hand, Keppel Corp fell S$0.03 or 0.57 per cent to S$5.28, and Keppel Reit finished S$0.02 or 1.74 per cent lower at S$1.13.

ComfortDelGro tumbled S$0.05 or 3.11 per cent to S$1.56 on news that it has shelved its initial public offering (IPO) plans for its Australian subsidiary owing to market conditions.

Geo Energy Resources slipped S$0.005 or 1.47 per cent to S$0.335. The Indonesian coal producer posted record third-quarter profits and revenue, on the back of a surge in coal prices to a historic high amid a supply crunch and overwhelming demand. It declared an interim dividend of S$0.03 per share for Q3 FY2021.

It was also the day's fourth most active, with 37 million shares changing hands.

AEM Holdings outperformed the STI, climbing S$0.19 or 4.54 per cent to S$4.38. The electronic services provider reported a 4.3 per cent fall in Q3 net profit to S$23.3 million from a year ago. CGS-CIMB Research reiterated its "add" rating on the counter, with a target price of S$5.84, citing catalysts such as stronger-than-expected orders from major customer and earlier-than-expected success in securing orders from other prospective customers.