Singapore shares decline despite regional rally; STI falls 0.3%

THE Straits Times Index (STI) shed 0.3 per cent, or 9.46 points, to 3,061.85, even as major markets in Asia rose on Friday (Oct 27).

Across the broader market, gainers beat losers 344 to 257 after 1.24 billion securities worth S$883.5 million changed hands.

Within the STI, Capitaland Integrated Commercial Trust (CICT) was the top gainer. The real estate investment trust’s units rose 1.8 per cent, or S$0.03, to S$1.74.

In a research report published on Friday, RHB analyst Vijay Natarajan upgraded his call on CICT to “buy” from “neutral” and maintained a target price of S$2. He noted that its valuations are now more attractive as it trades at about 0.8 times book value after a recent market sell-off.

At the bottom of the table was Singapore Airlines, which shed 2.4 per cent, or S$0.15, to S$6.06.

The trio of local banks was in the red on Friday. UOB shed 0.9 per cent, or S$0.25, to S$27.03, while OCBC fell 0.7 per cent, or S$0.09, to S$12.76. DBS edged down 0.03 per cent, or S$0.01, to S$33.13.

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In a research report on UOB released on Friday, CGS-CIMB analysts reiterated “add” with an unchanged target price of S$33.30 after the lender posted its third-quarter earnings on Thursday.

“UOB’s defensive stance bodes well for capital preservation,” they said, noting that UOB sacrificed some margin by deploying funds into lower-yield but more-liquid interbank holdings to maintain strong liquidity and funding profile.

Major markets in the region were in the black. Japan’s Nikkei 225 index gained 1.3 per cent, while Hong Kong’s Hang Seng index rose 2.1 per cent and South Korea’s Kospi rose 0.2 per cent.