STI falls 0.5% in directionless trade; regional shares close mixed

SINGAPORE shares traded directionless and ended two straight days of gains with the key Straits Times Index finishing 14.38 points or 0.51 per cent lower at 2,825.51 on Monday.

The retreat in the local bourse mirrored the pattern in Japan, Hong Kong and China which closed between 0.8 and 1.2 per cent lower. Overall, the region put up a mixed showing with South Korea, Taiwan, Australia and Malaysia posting gains.

Trading sentiment at the start of the week appeared cautious on geopolitical concerns - Reuters reported that the US was preparing to impose sanctions on some Chinese officials - while oil prices fell on rising global Covid-19 cases.

In a note, CIMB private banking economist Song Seng Wun said he expects market participants to continue to focus on the long-elusive US stimulus deal this week after signs over the weekend that momentum on the negotiations was picking up.

In Singapore, some 2.33 billion shares worth S$1.47 billion changed hands. Among the STI constituents, 10 counters were up and 19 down. Singapore's three banks led Monday's losses.

Sembcorp Marine topped the day's most active with 234 million shares worth S$39.3 million done. The counter fell 0.7 Singapore cent or 4.09 per cent to 16.4 Singapore cents.

Sembcorp Industries lost six Singapore cents or 3.2 per cent to S$1.79. The conglomerate issued a profit warning on Monday that it expects to sink into the red for the year ending Dec 2020 owing to impairments for utilities assets in UK, Singapore and China in the second half of the year.

Japfa gained 3.5 cents or 4.6 per cent to 80.5 Singapore cents. The agri-food firm said it will sell an 80 per cent stake in its Indonesian dairy unit to private equity firms TPG and Northstar Group for US$236 million.

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