Singapore stocks snap 5-day winning streak on Tuesday; STI down 0.1%

[SINGAPORE] Local stocks closed lower on Tuesday (Jun 10), ending five straight days of gains amid concerns that the US-China trade talks may not be going well.

Chinese stocks fell ahead of the second day of trade talks with the US, a sign that investors are still nervous as the countries meet to address contentious issues in London.

Some Chinese investors have speculated that the negotiations are not progressing well, following an earlier commentary listed in a social media account affiliated with state broadcaster CCTV. The post stated that “the US should realistically view the progress made and revoke negative measures against China”.

The Shanghai Composite fell 0.4 per cent at the close, and the Shenzhen Component shed 0.9 per cent.

Still, the sustained dialogue between the US and China is encouraging market participants, “even though immediate breakthroughs are not expected”, said Eric Mak, Asia equity research analyst at Julius Baer.

In Singapore, the benchmark Straits Times Index (STI) fell about 0.1 per cent or 2.52 points to end at 3,933.80.

In the broader market, gainers beat losers 249 to 216, with around 984.9 million securities worth nearly S$943 million having changed hands.

UOL advanced the most on the STI, rising 1.8 per cent, or S$0.11, to S$6.18. DFI Retail reversed its Monday performance as the biggest gainer to lose the most on Tuesday, down 1.8 per cent, or US$0.05, to close at US$2.75.

The trio of local banks ended lower. DBS fell 0.8 per cent, or S$0.34, to close at S$45.15; OCBC dropped 0.6 per cent, or S$0.10, to S$16.27; UOB dipped 0.2 per cent, or S$0.07, to S$35.25.

SEE ALSO

Trump says China ‘not easy’ as trade talks to resume on Tuesday

Trade in the broader Asian region was mixed; apart from the declines in China, Hong Kong’s Hang Seng Index, Malaysia’s KLCI Index and the Philippines’ PSEi closed lower.

On the other hand, Japan’s Nikkei, South Korea’s Kospi and Taiwan’s Taiex ended higher.