STI adds 0.3% in range-bound week of trading

THIS week's trading in Singapore was one characterised by market watchers as largely range-bound. The Straits Times Index (STI) made either small gains or losses, and at week's close eked out 9.34 points or a 0.3 per cent gain from last Friday's close of 3,322.64.

On Friday, trading opened following a lacklustre US session and lower-than-expected advanced first-quarter estimates for the Singapore economy. But while the blue-chip index managed to improve later in the session, possibly due to encouraging China trade figures for March, it needed a last hour rally to close at 3,331.98, up just 1.16 points or 0.03 per cent.

IG market strategist Pan Jingyi said: "To some extent, the Chinese exports surprise actually helped to ignite a slight uptick for the STI though it remains to be seen whether the counteracting imports disappointment may suggest weakness into April."

Fourteen of the STI's 30 constituents ended the day in the black. Among them, the three local banks, which have a total weight of around 40 per cent of the STI, did the heavy lifting.

DBS Group Holdings closed five Singapore cents or 0.2 per cent higher at S$26.98, OCBC Bank edged up one cent or 0.1 per cent to S$11.74, and United Overseas Bank ended S$0.15 or 0.6 per cent higher at S$26.68.

Genting Singapore remained the blue-chip index's most traded, ending the session flat at 96.5 cents with 43.4 million shares changing hands. The counter has shed 10.8 per cent since April 3's opening.

A remisier told The Business Times that investors have closed their positions on Genting as they might view it as a less enticing growth stock.

Across the Singapore market, decliners outpaced advancers 217 to 201.

Trading clocked in at 1.25 billion securities, just under the daily average over the first three months of 2019. Total turnover came to S$870.20 million, 85 per cent of the January-to-March daily average.

Pennies were in heavy play during Friday's session. Jiutian Chemical was the bourse's most active counter with 50.3 million shares traded, adding 0.3 Singapore cent or 16.7 per cent to close at 2.1 cents.

Meanwhile, Imperium Crown closed 0.2 Singapore cent or 10.5 per cent higher at 2.1 cents with 22.2 million shares exchanging hands.

UOB Kay Hian's vice-president of equities and financial products, Brandon Leu, said that with the market continuing to "trade around its recent high, traders are somewhat bullish about the market prospects, taking on more risk, into small cap stocks".

Meanwhile, a trader felt that investors were likely "cautious on large caps" following their rally since the start of the year.

Among non-STI counters, Best World International was down S$0.17 or 8.8 per cent to close at S$1.77, with 9.05 million shares changing hands.

Best World shares have fallen by 24 per cent since a April 2 report by brokerage CLSA said that consumer interest for the group's flagship skincare brand in China trails its strong sales revenue.