Singapore shares kick off week on dour note; STI down 0.4%
Uma Devi
THE local stock market ended the first trading day of the week lower, as traders remained cautious despite news of a tentative US debt ceiling deal.
The benchmark Straits Times Index fell 0.4 per cent or 12.17 points to close on Monday (May 29) at 3,195.22. Across the broader market, decliners beat out advancers 305 to 259. Daily turnover came in at about 1.4 billion securities worth a collective S$827.9 million.
Market watchers noted that although the bill to lift the US debt ceiling will be put to a vote on May 31, uncertainty remains. Oanda analyst Kelvin Wong said in a note that the US stock market “seems to be ignoring or complacent” about a potential significant liquidity drain in the financial markets following the US debt ceiling extension deal.
He said that liquidity and financial conditions have started to tighten over the last two weeks. Positive momentum has started to build up in the 10-year US Treasury yield, and the implied volatility in US Treasury bonds has remained at an elevated level.
On the Singapore Exchange, iFast was among Monday’s top gainers, rising 3.6 per cent or S$0.15 to S$4.36.
Sembcorp Industries was another top advancer, adding 2.5 per cent or S$0.12 to S$5.02. Citi has upped its target price for the counter to S$5.98.
Stocks from the Jardine group of companies were among the day’s biggest decliners. Jardine Cycle & Carriage fell 4.5 per cent or S$1.55 to S$32.86 on an ex-dividend basis; Jardine Matheson Holdings shed 1.4 per cent or US$0.68 to US$49.00.
Seatrium was the most heavily traded counter, with 329.8 million shares changing hands. The counter lost 2.4 per cent or S$0.003 to finish the day at S$0.122. Other heavily traded stocks included Thai Beverage , Genting Singapore and Singtel .
Copyright SPH Media. All rights reserved.
