Singapore stocks end lower on Tuesday; STI dips 0.5%

SINGAPORE stocks continued to slide on Tuesday (Aug 15).

The benchmark Straits Times Index (STI) fell 0.5 per cent to 3,232.74. Across the broader market, losers outnumbered gainers 291 to 272, after 1.2 billion securities worth S$976.5 million changed hands.

Regional indices were mixed. Japan’s Nikkei 225 climbed 0.6 per cent, while the FTSE Bursa Malaysia KLCI was up 0.2 per cent. Hong Kong’s Hang Seng Index slid 1 per cent. South Korea’s stock exchange was closed for a public holiday. (See *Amendment note)

Back on the Singapore Exchange, semiconductor player Frencken Group spiked up 14 per cent or S$0.115 to close at S$0.935, following the release of its financial results for the six months ended Jun 30. Analysts expect better days ahead for the group, with many raising their target prices on the stock on the grounds that its share price has bottomed out.

Sembcorp Industries was Tuesday’s biggest loser on the STI, falling 1.7 per cent or S$0.10 to S$5.65. The energy- and urban-solutions provider is slated to join the MSCI Singapore Index from Sep 1, as its market cap has crossed the S$10 billion threshold.

Meanwhile, Yangzijiang Shipbuilding continued its ascent, posting a 52-week high of S$1.70, up S$0.01 or 0.6 per cent from the previous day. Its most recent earnings, announced on Aug 3, had increased by 47 per cent to 1.7 billion yuan (S$316.9 million) on strong ship construction revenue. 

The trio of local banks continued to be mired in red on Tuesday. OCBC sank 0.8 per cent or S$0.10 to S$12.50, DBS slipped 0.8 per cent or S$0.27 to S$33.29, and UOB slid 0.5 per cent or S$0.14 to S$28.64. 

On a broader scale, SPI Asset Management managing partner Stephen Innes said recent swings in commodities have emerged as a risk to the more benign inflation outlook.

“While this risk should be monitored from now on, we think there are several reasons why commodity market developments – at least to date – are unlikely to derail the disinflation trend through the remainder of the year,” he said.

SEE ALSO

Hot stock: Frencken rises over 10% after H1 results release

China stocks close down after disappointing economic data, despite rate cuts

These include modest increases in global soft commodity prices and the likely easing of global food inflation.

*Amendment note: An earlier version of the story stated that South Korea’s Kospi Composite Index was down 0.8 per cent. It was actually closed for a public holiday.