STI continues slide on Friday, falls 0.2%
Across the broader market, advancers outnumber decliners 295 to 262 after 2.6 billion shares worth S$3.3 billion change hands
[SINGAPORE] Singapore stocks ended the week lower on Friday (Sep 19), amid a mixed performance in regional indices.
The Straits Times Index was down 0.2 per cent or 9.91 points at 4,302.71.
Across the broader market, advancers outnumbered decliners 295 to 262 after 2.6 billion shares worth S$3.3 billion changed hands.
The trio of local banks closed lower. DBS was down 1.5 per cent or S$0.76 at S$50.47, UOB slipped 0.5 per cent or S$0.17 to S$34.63 and OCBC fell 0.6 per cent or S$0.10 to S$16.46.
Yangzijiang Shipbuilding was the top gainer on the STI, closing 3.1 per cent or S$0.10 higher at S$3.30.
The biggest loser was DFI Retail , which declined 3.4 per cent or US$0.11 to US$3.17.
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Across the region, major indices were mixed on Friday. South Korea’s Kospi was down 0.5 per cent and the Nikkei 225 fell 0.6 cent. Hong Kong’s Hang Seng Index and Malaysia’s KLCI closed flat.
In the aftermath of the Federal Reserve rate cut, major benchmarks S&P, Dow and Russell 2000 have hit record highs together – a rare occurrence, said Stephen Innes, managing director at SPI Asset Management. The rate cut amid growth has created an environment for risk as capital comes into the market.
The small caps might be the soul of this rally, said Innes, as the Russell 2000 increased over 2 per cent. These companies were the first to be hit when interest rates were hiked, and so were also the first to see the upside when rates were cut.
“If the easing cycle continues, small caps become the high-beta torchbearers. If not, their debt loads could once again turn noose-like,” said Innes.
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