STI snaps 8-day rally with 0.2% decline to 3,280.04 points

MARKETS in Asia largely closed lower on Tuesday (Jan 18) as investor sentiment weakened due to inflation concerns. The Straits Times Index (STI) broke its 8-day winning streak to close down 0.2 per cent, or 7.91 points at 3,280.04.

Within the region, Hong Kong's Hang Seng index closed down 0.4 per cent while the Jakarta Composite Index lost 0.5 per cent and South Korea's Kospi fell 0.9 per cent. Tokyo's Nikkei 225 fell 0.3 per cent.

Singapore Exchange market strategist Geoff Howie attributed weaker market sentiment to ongoing inflation concerns after 10-year US treasury yields made a fresh 2-year high and Brent crude futures rallied above US$88 per barrel.

Still, he noted that the STI reached a 29-month high of 3,299.64 in the morning trading session, its highest level since its 3,311.26 high on Aug 1, 2019.

Across the Singapore market, losers beat gainers 253 to 185 after 1.12 billion shares worth S$993.99 million changed hands.

The best performing stock was Dairy Farm D01 , which rose 1.1 per cent or US$0.03 to close at US$2.85.

Yangzijiang Shipbuilding BS6 was at the bottom of the table, closing down S$0.03 or 2.2 per cent at S$1.31.

Singtel Z74 was the most heavily traded STI counter by volume, falling by 0.8 per cent or S$0.02 to close at S$2.47 after 23.3 million shares worth S$57.7 million changed hands.

The trio of banks ended down on Tuesday. DBS D05 was down 0.2 per cent, or S$0.08 to close at S$35.92, while OCBC O39 closed down 0.4 per cent or S$0.05 at S$12.25 and UOB U11 was down 0.7 per cent or S$0.20 to close at S$29.98.