STI pares loss to end turbulent week 0.2% down

SINGAPORE'S bourse ended the week down by 0.2 per cent - not the most ideal but paring the 0.8 per cent loss encountered in the beginning of the week.

It capped a mixed week of trading for Asian stocks which endured issues ranging from rising US interest rates to global geopolitical tensions and the omnipresent US-China trade conflict.

One of the biggest data points came from China's economy, which grew 6.5 per cent year on year but was the slowest rate since 2009.

The fight with the US appears to have taken its toll on the Chinese economy, which is already seeing weakness. Private Chinese companies are facing liquidity concerns, with capital outflows triggered by a weakened yuan.

"When China sneezes, it is not only emerging markets that will catch a cold but the rest of the world," said FXTM's Lukman Otunuga, adding that further signs of a slowdown in economic momentum is "likely to compound risk aversion, ultimately impacting global sentiment".

Chinese stocks staged a late Friday rally on the injection of support from top finance officials, however, with the country's vice-premier, the chairman of China Banking and Insurance Regulatory Commission, and the governor of People's Bank of China all chipping in to give a boost to the battered market.

A fall in US stocks overnight on Thursday also dampened sentiment, dented by weak industrial earnings, impact of tariffs and a brewing situation over missing journalist Jamal Khashoggi.

In Asia, Tokyo stocks extended their losses on Friday, with the key Nikkei 225 index slipping 0.56 per cent on the day, marking a 0.72 per cent fall over the course of the week.

Malaysian stocks closed 0.3 per cent lower, weighed down by telco counters.

In Singapore, the key Straits Times Index endured a mostly see-saw week to end 7.16 points lower to 3,062.51 on Friday. Decliners outnumbered advancers 230 to 144, with turnover of 1.85 billion shares worth S$1.06 billion in total.

Yangzijiang Shipbuilding, the most-traded stock of the session, tumbled 13.87 per cent to S$1.18, seeing heavy trading of 113.07 million shares, while among active index stocks, DBS ended the day at S$24.26, down 0.37 per cent or 9 Singapore cents, while Singtel gained 0.96 per cent or 3 Singapore cents to S$3.17.

Keppel Corporation ended the day 1.78 per cent lower to S$6.64. The conglomerate's offshore and marine division turned in a S$1.5 million Q3 net profit, and its property and infrastructure divisions "continued to deliver", noted OCBC in a note.

In the property sector, City Developments recouped some of its losses to end the day 0.49 per cent up to S$8.28, after dipping in the previous trading session. CityDev's mass-market residential projects are "likely to get a short-term demand boost" from the new requirement of raising the size of the average flat, Bloomberg Intelligence said, which will restrict the supply of smaller units. The rule, which will come into effect in January, could dent developers' long-term volumes and margins.

Frasers Commercial Trust, despite reporting a slide in distribution per unit to 2.4 Singapore cents from 2.41 Singapore cents, saw its counter rise 1.42 per cent to S$1.43.