STI see-sawing ahead of bankers' meeting

THE Singapore stock market stayed on the see-saw on Thursday, bouncing back from the previous day's decline and shrugging off concerns about a US government shutdown.

The Straits Times Index (STI) rose 0.37 per cent, or 12.11 points, to close at 3,272.16.

Gainers and losers were evenly matched, with 218 stocks on higher ground compared to 207 that slid.

Thursday's session was the most active in a quiet week, with 2.2 billion shares worth S$1 billion changing hands. Over the first seven months of the year, the average daily volume was 2.4 billion, and the average daily turnover was S$1.2 billion.

The market headed into the open facing headwinds from the US, where markets had fallen following US President Donald Trump's threats of a government shutdown if Congress did not approve funding for a wall at the Mexican border.

But the STI opened at 3,267.57, about 0.2 per cent higher than its previous close, and never ventured into negative territory for the rest of the day.

"In Asia, markets are more sceptical about the US shutdown and whether that will lead to us seeing an impact in September," IG market strategist Pan Jingyi said.

Favourable technicals have supported the market at about the 3,240 level, although some consolidation in the next few months might be possible, Ms Pan added.

But the week's ambivalence - the market has been alternating between up and down sessions - was a sign of caution and uncertainty surrounding the central banks.

The US Federal Reserve's annual Jackson Hole meeting was due to begin on Thursday, US time, and Fed chairwoman Janet Yellen and European Central Bank president Mario Draghi are expected to give speeches on Friday, US time.

There is a lack of consensus about where central bank policy is headed, Ms Pan said. Although the Fed has begun raising rates, when the next hike will take place, and the pace of increases going forward, are a mystery. Just as significant and just as unclear is when the Fed will begin unwinding the massive balance sheet that was built up through three rounds of quantitative easing.

"It's giving this a lot of event risk," Ms Pan said.

Among the top actives, property and investment company Rowsley has been heavily traded over the week, and on Thursday, the 361.8 million Rowsley shares that changed hands lifted the stock to the top of the volumes table.

Rowsley stock closed at 11.6 Singapore cents, down by 4.1 per cent or half a cent.

A trader said that the activity could be linked to speculation about when Rowsley might announce the next step in its plan to acquire Thomson Medical and Malaysia-listed TMC Life Sciences. In July, Rowsley signed a non-binding term sheet to acquire the assets and indicated that a sale and purchase agreement was expected within two months.

There has also been speculation about whether former chairman Albert Hong is done selling his shares. Mr Hong, who became a substantial shareholder in 2016 and stepped down as chairman this year, has been disposing of his stock over the past year. He stopped being a substantial shareholder this month.

"The market's puzzled, trying to figure out whether he was done selling," the trader said. "The market was feeling that every time the stock hit 13 cents, he would be in the market selling."

For the full listing of SGX prices, go to btd.sg/BTmkts