Singapore stocks end lower on Friday; STI down 0.4%

SINGAPORE stocks ended the week lower, tracking overnight losses on Wall Street.

The benchmark Straits Times Index (STI) lost 0.4 per cent or 11.67 points to 3,292.39. Gainers outnumbered losers 320 to 256, after 1.4 billion securities worth S$1.1 billion changed hands.

Yeap Jun Rong, market analyst at IG, noted Asian markets were subdued on Friday (Aug 4), after major US indices ended lower on Thursday. US 10-year Treasury yields continued to head to its highest level in almost nine months, he noted.

“Following an 8 per cent rally in the STI since early July this year, some ‘sell-the-news’ seem to be playing out,” Yeap said.

The trio of local banks saw mixed trading on Friday.

UOB was the biggest loser on the STI, falling 3.4 per cent or S$1.02 to S$28.80.

OCBC also closed lower, losing 0.8 per cent or S$0.10 to S$12.94.

The lender on Friday posted a 34 per cent rise in net profit to S$1.7 billion for the second quarter ended June, slightly missing estimates.

It also declared a higher interim dividend of S$0.40 per share for the period, up 43 per cent on year, to represent a payout ratio of 50 per cent of the group’s H1 net profit.

SEE ALSO

Singapore stocks open lower on Friday; STI down 0.2%

OCBC expects to deliver a stronger-than-expected net interest margin for 2023, but said it will stay prudent as the global growth momentum is expected to slow heading into 2024.

Meanwhile, DBS gained 1.5 per cent or S$0.49 to close at S$34.25.

The biggest gainer on the benchmark index was Yangzijiang Shipbuilding, which rose 1.9 per cent or S$0.03 to close at S$1.58.

On Thursday, the shipbuilder posted a net profit of 1.7 billion yuan (S$324.6 million) for the first half ended Jun 30, up 47 per cent year on year from 1.2 billion yuan.

Elsewhere in the region, key indices were mixed.

The Nikkei 225 rose 0.1 per cent, the Hang Seng Index gained 0.6 per cent, and the FTSE Bursa Malaysia KLCI Index rose 0.2 per cent. The Kospi Composite Index fell 0.1 per cent.