Local stocks close lower on Wednesday, STI down 0.2%

TRADERS approached markets with caution on Wednesday, amid continued worries over the usual suspects - potential tapering by the US Federal Reserve, China's property woes and the Omicron variant.

The benchmark Straits Times Index fell 0.2 per cent or 6.21 points to end Wednesday at 3,114.88. Across the broader market, decliners surged past advancers 264 to 180, after 883.4 million securities worth a total of S$761.8 million changed hands.

IG market strategist Yeap Jun Rong noted that a "wait-and-see stance" would likely prevail across markets in the region ahead of the Federal Open Market Committee (FOMC) meeting, as traders are looking to sidestep additional risks.

"The FOMC outcome will likely see markets scrutinising on three aspects: the pace of tightening, the outlook for rate hikes and the economic forecasts," said Yeap.

"Thus far, market expectations may be pricing for a potential doubling of (the) tapering pace (US$30 billion), with 2 to 3 rate hikes by the end of 2022."

An outcome which suggests either a larger monthly reduction in asset purchases by the Fed or a shift in policymakers' support for 3 rate hikes next year, he added, may paint a "more hawkish outcome" that could potentially weigh on equities.

Across Asia, markets made only slight gains at best. The Kospi added 0.05 per cent; the Nikkei 225 gained 0.1 per cent, and the KLCI gained 0.1 per cent. Meanwhile, the Hang Seng Index fell 0.9 per cent and the ASX 200 shed 0.7 per cent.

On the local bourse, thinly-traded Great Eastern Holdings G07 was the top gainer. The counter closed at S$20.43, up 1.2 per cent or S$0.25. Jardine Cycle and Carriage c07 was another top advancer, adding 0.3 per cent or S$0.07 to S$21.27.

The trio of local lenders ended the day mixed. OCBC o39 was down 0.3 per cent or S$0.03 to S$11.29. Meanwhile, DBS D05 was up 0.2 per cent or S$0.06 to S$31.90 and UOB U11 added 0.2 per cent or S$0.04 to S$26.68.

A number of tech plays were among the biggest decliners. AEM Holdings awx was the biggest loser of the day, falling 3.9 per cent or S$0.21 to S$5.14. Venture Corporation V03 was down 0.4 per cent or S$0.07 to S$18.50; Nanofilm Technologies MZH shed 1.5 per cent or S$0.06 to S$3.88, and iFast AIY lost 0.6 per cent or S$0.05 to S$8.09. Micro-Mechanics 5DD also slipped 1.5 per cent or S$0.05 to S$3.30.

Disa Limited 532 was the most heavily traded counter on Wednesday, with some 72.3 million shares changing hands. The counter closed at $0.005, up 25 per cent or S$0.001.

Other heavily traded stocks included Hatten Land PH0 , Metech International and HGH Holdings 5GZ .