Singapore stocks fall amid mixed regional showing; STI down 0.8%

THE Straits Times Index (STI) fell 0.8 per cent or 26.95 points to 3,217.11 on Wednesday (Feb 21), amid a mixed regional showing as well as a steep decline in Singapore Airlines (SIA) shares after the company’s Q3 results on Tuesday underperformed expectations.

Across the broader market, gainers beat losers 312 to 283 after 2.24 billion securities worth S$1.47 billion changed hands.

Elsewhere in the region, the Hang Seng Index rose 1.6 per cent, while South Korea’s Kospi fell 0.2 per cent and Japan’s Nikkei 225 fell 0.3 per cent.

IG market analyst Yeap Jun Rong said Asian stocks appear to be taking a “wait-and-see” approach, with the upcoming US Federal Open Market Committee minutes and chipmaker Nvidia’s Q4 earnings serving as key market risk events.

He also noted that there may still be some market reservations about the effectiveness of the Chinese authorities’ cut to the five-year loan prime rate, given the limited success of previous cuts.

“Nevertheless, it highlights Chinese authorities’ commitment to shore up the property market and lift overall growth, although market participants will still want to see policy measures translate to a sustained economic recovery for more conviction into Chinese equities,” he said.

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On the STI, Jardine Matheson Holdings was the top gainer on Wednesday, rising 4 per cent or US$1.68 to US$43.73.

SIA, meanwhile, landed at the bottom of the table. The counter fell 9.5 per cent or S$0.70 to S$6.67 after it posted net profit figures that came in 15 per cent below consensus on Tuesday evening.

Sembcorp Industries also saw heavy trading as it fell 5.7 per cent or S$0.33 to S$5.48. The company posted a 15 per cent year-on-year rise in net profit to S$412 million for the second half of FY2023.