STI fails to sustain early gains despite Wall Street rally
There are signs of US Covid-19 cases slowing but strategists say a V-shaped recovery is still far from sight.
Claudia Tan HS
SINGAPORE equities were mostly lower on Wednesday, after failing to sustain its morning gains.
The Straits Times Index fell 1.1 per cent or 29.01 points to 2,605.56.
This was despite an overnight rally on Wall Street that was prompted by signs of Covid-19 cases coming to a plateau in the United States.
Stephen Innes, AxiCorp's chief global markets strategist, noted that a V-shaped recovery is still far from sight and "there is still much to be worried about".
"As virus curves continue to flatten, attention turns to when lockdowns can end. At the moment, evidence suggests that governments will continue to tread carefully until otherwise confirmed," he said.
Across the Singapore market, decliners outnumbered advancers 248 to 190 for the day, with 1.39 billion shares worth S$1.58 billion changing hands.
Jardine Strategic Holdings emerged as the best performing stock, gaining US$0.54 or 2.3 per cent to US$24.04.
At the bottom of the STI's performance table were City Developments and SATS, which fell 5.6 per cent to S$7.48, and 4.4 per cent to S$3.01 respectively.
The most active index counter by volume was Singtel, which fell S$0.02 or 0.7 per cent to S$2.80.
Among other heavily traded stocks was Genting Singapore, which closed flat at 74.5 Singapore cents.
OCBC Investment Research had a "buy" rating for Genting Singapore on Wednesday, noting that government support and the firm's strong balance sheet will help it weather the economic crisis.
Meanwhile, all three banks closed in the red. DBS shed S$0.36 or 1.8 per cent to S$19.50, OCBC fell S$0.22 or 2.4 per cent to S$8.90, while UOB closed at S$20.28, down S$0.42 or 2 per cent.
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