STI falls despite Asia gains and RHB upgrading Singapore banking stocks

SINGAPORE stocks closed lower on Monday (Nov 25), even as most regional markets ended in positive territory. The benchmark Straits Times Index (STI) shed some earlier gains, slipping 0.4 per cent or 14.63 points to 3,731.39 at the close. Across the broader market, gainers outnumbered losers 280 to 271, after 1.6 billion securities worth S$2.9 billion changed hands.

The STI was dragged down by maritime vessel maker Yangzijiang Shipbuilding , which fell 2.2 per cent or S$0.06 to S$2.63.

The top performer among the constituents was DFI Retail Group Holdings , which closed 3.2 per cent or US$0.08 higher at US$2.58.

Banking stocks ended in the red. DBS declined 0.2 per cent or S$0.08 to S$42.25. UOB lost 1.2 per cent or S$0.42 to end at S$36.01. OCBC was down 1.6 per cent or S$0.27 at S$16.19.

Stocks that analysts are bullish on include Singapore Post (SingPost), which Maybank initiated coverage on with a “buy” rating and a S$0.74 price target. Shares of SingPost closed up 2.8 per cent or S$0.015 at S$0.55. RHB Bank upgraded banking stocks from neutral to overweight on Monday, with a “buy” call on UOB and DBS. It said they could provide a “defensive shelter” for investors.

Regional markets ended mixed. Hong Kong’s Hang Seng fell 0.4 per cent, while Malaysia’s FTSE Bursa Malaysia Kuala Lumpur Composite Index gained 0.5 per cent, Japan’s Nikkei 225 ended 1.3 per cent higher, and South Korea’s Kospi rose 1.3 per cent. The MSCI Asia ex-Japan index was last up around 0.6 per cent.

SEE ALSO

Stocks to watch: CDL, Paragon Reit

Morgan Stanley said in a note on Monday that Chinese stocks have been drawing little interest. “Most investors viewed them as cheap but still facing risks related to the recent rise in stock prices, potentially higher tariffs, and ongoing debt deflation,” it wrote. “The overwhelming consensus was that while there may be long-term value in China stocks, there’s no clear catalyst to realise it over the near term.”