Sembcorp, Keppel lead STI decline on Tuesday; STI down 0.7%
Tan Nai Lun
SINGAPORE stocks ended lower on Tuesday (Jun 20), led by a decline in Sembcorp Industries and Keppel Corporation.
The benchmark Straits Times Index (STI) fell 0.7 per cent or 20.94 points to 3,220.23. Losers outnumbered gainers 304 to 220, after 1.2 billion securities worth S$1.1 billion changed hands.
Shares of Sembcorp Industries and Keppel Corp fell amid heavy trading, the day after the Energy Market Authority (EMA) said it will introduce a temporary price cap on wholesale electricity prices.
At the close, Sembcorp Industries lost 9.2 per cent or S$0.52 to S$5.15, with 24.4 million shares worth S$127.5 million having changed hands.
Keppel Corp ended 5.2 per cent or S$0.36 lower at S$6.60, after eight million shares worth S$53.5 million changed hands.
Across the broader market, ComfortDelGro was actively traded. It ended 0.9 per cent or S$0.01 higher at S$1.15.
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The transport operator on Tuesday said it would implement a 70-cent platform fee from July for rides booked via its CDG Zig app so that it can continue to improve the quality of its point-to-point transport services. (*See amendment note)
These were among other related announcements made by taxi and ride-hailing companies on Monday, among which was the extension of a temporary taxi fare hike until Jun 30, 2024.
The trio of local banks traded mixed on Tuesday. DBS gained 0.1 per cent or S$0.04 to S$31.15, and UOB rose 0.3 per cent or S$0.08 to S$27.90.
OCBC lost 0.2 per cent or S$0.03 to S$12.56. The bank on Monday said it had upped its stake in insurance subsidiary Great Eastern to 88.4 per cent from 87.9 per cent.
Elsewhere in the region, key indices were mixed. The Hang Seng Index fell 1.5 per cent, and the Kospi Composite Index lost 0.2 per cent. The Nikkei 225 and the FTSE Bursa Malaysia KLCI Index rose 0.1 per cent each.
IG market analyst Yeap Jun Rong noted that a meet-up between US Secretary of State Antony Blinken and China’s President Xi Jinping on Monday marked “a baby step in the right direction” for warmer US-China ties, although the absence of any concrete developments and still-firm tone from China suggests a need for greater clarity.
Nevertheless, there is optimism that the meeting at least opens the way to more bilateral meetings or even hope of a Biden-Xi summit later this year, Yeap said.
Yeap expects the US markets will be back online today to set a clearer backdrop for the risk environment, after having been closed for a holiday on Monday.
*Amendment note: An earlier version of this article incorrectly said ComfortDelGro would also raise starting fares for its Premium, XL and XL Kids services. It is Gojek that is doing so.
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