STI ends Monday almost flat as market faces reality check
Across the region, stock markets mostly closed in the black
LOCAL shares closed on a dour note on Monday (May 20), with the local benchmark index trading sideways as investors mulled over the possibility of interest rate cuts and other macroeconomic concerns.
The Straits Times Index (STI) ended with a gain of just 0.02 per cent or 0.57 point to 3,314.05. Across the broader market, advancers far outpaced decliners 333 to 271. Daily turnover came in at 1.2 billion securities worth S$899 million.
Across the region, stock markets mostly ended the day in the black as traders shrug off macroeconomic worries and inflation concerns. The Nikkei 225 rose 0.7 per cent; the Hang Seng Index added 0.4 per cent, and the Bursa advanced 0.7 per cent. The ASX200 and Kospi each added 0.6 per cent.
Market watchers said all eyes remain on China, and Asian markets are likely to take their cue from one of the global economic powerhouses.
Mixed macroeconomic data from China shows that the country’s recovery from the coronavirus pandemic remains “unbalanced”, said Bank of Singapore’s chief economist Mansoor Mohi-uddin in a note.
The mixed data is spurring “new easing”, he said. “The latest news show officials are placing a high priority on supporting the economy’s weaker links, and China’s markets are reacting positively,” he added.
Jardine Matheson Holdings was the top gainer on the STI, rising 1.2 per cent or US$0.47 to US$39.81. DBS was another notable gainer, advancing 0.3 per cent or S$0.10 to S$35.80.
The other two local lenders ended the day in the red. UOB shed 0.1 per cent or S$0.03 to S$30.24, while OCBC lost 0.2 per cent or S$0.03 to S$14.41.
ST Engineering was the biggest constituent loser for the day. The stock lost 1.9 per cent or S$0.08 to S$4.15 on a cum dividend basis. Keppel was another top decliner, shedding 0.6 per cent or S$0.04 to S$6.73.
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