Singapore shares begin week lower as traders tread with caution; STI down 0.3%
Uma Devi
LOCAL shares began the week in the red, as investors took in news of the Israeli conflict, the resultant impact on equities globally, as well as rising uncertainty amid the start of the corporate earnings season.
The benchmark Straits Times Index (STI) lost 0.3 per cent or 7.88 points to end Monday (Oct 9) at 3,166.51. Across the broader market, decliners narrowly beat advancers 279 to 277. Daily turnover came in at 1.2 billion securities worth a collective S$581 million.
SPI Asset Management’s managing partner Stephen Innes said in a note on Monday that the earnings season comes at a time “when macroeconomic uncertainty affects market sentiment”.
The ongoing conflict in Israel, he said, means that broader markets should veer risk-off but could possibly slide to a more wait-and-see mode.
“Historical analysis suggests that oil prices tend to experience sustained gains after the Middle East crises. Meanwhile, stocks tend to eventually recover and trend higher after an initial period of volatility,” he said.
On the local bourse, OCBC was one of Monday’s top gainers by value. The stock, which was the top STI constituent gainer, added 0.2 per cent or S$0.03 to close at S$12.88.
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The other two lenders ended the day mixed. UOB booked a gain of 0.04 per cent or S$0.01 to S$28.27, while DBS fell 0.6 per cent or S$0.21 to S$33.58.
SGX was another top advancer, rising 0.3 per cent or S$0.03 to close at S$9.80.
Jardine Cycle and Carriage was the biggest loser, slipping 1.4 per cent or S$0.43 to close at S$30.35.
Seatrium was the most heavily traded stock for the day, with 404.7 million shares changing hands. The counter added 1.6 per cent or S$0.002 to close at S$0.125.
Other heavily traded stocks included Rex International , Thai Beverage and Medtecs Internationa l.
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