Singapore stocks struggle for direction amid uncertain outlook; STI down 0.1%

THE Straits Times Index (STI) fell 0.1 per cent or 2.65 points to 3,293.91 points on Wednesday (Apr 26), as markets were swayed by a weaker overnight US session and positive surprises from tech giants Microsoft and Alphabet.

Across the broader market, gainers beat losers 298 to 264 after 1.3 billion securities worth S$927.9 million were traded.

Regional indices were mixed on Wednesday. Japan’s Nikkei 225 index fell 0.7 per cent, while South Korea’s Kospi shed 0.2 per cent and Hong Kong’s Hang Seng Index gained 0.7 per cent.

IG market analyst Yeap Jun Rong noted that the better-than-expected performance of both Microsoft and Alphabet on Tuesday reflected some resilience amid a downbeat environment.

“Nevertheless, the gains in US equity futures this morning still trail the overnight losses for now, as lingering economic concerns and uncertainties around any spillovers from First Republic Bank continue to be something for the bulls to deal with,” he said.

First Republic Bank reported on Monday that it had lost 40 per cent of its deposits in the first quarter of the year.

Banks in Singapore were in the red on Wednesday. DBS shed 0.6 per cent or S$0.21 to S$32.70, while UOB fell 0.5 per cent or S$0.14 to S$29.26 and OCBC edged down 0.2 per cent or S$0.02 to S$12.60.

Yeap added that Asian sentiment seems to be struggling to balance between the negative performance of Wall Street and a potential recovery led by Microsoft and Alphabet’s results, which were announced after markets closed.

On the Straits Times Index, Frasers Logistics & Commercial Trust was the biggest gainer. The real estate investment trust’s units gained 2.3 per cent or S$0.03 to S$1.33.

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Meanwhile, Sats was at the bottom of the table, shedding 1.5 per cent or S$0.04 to S$2.60.