Singapore market slips 0.4% amid US pre-election jitters, worries of prolonged macro pain

SINGAPORE shares posted losses on Tuesday on a combination of factors from pre-election jitters and rising Covid-19 cases around the world to overnight falls on Wall Street.

The key Straits Times Index traded under water all day, although it pared some of its losses in midday trading and wrapped up the day at 2,512.87 - down 10.44 points or 0.4 per cent.

Except for China and Malaysia, key gauges elsewhere including Japan, Hong Kong, Taiwan and South Korea closed in the red too. Australia lost the most, down 1.7 per cent, despite the state of Victoria reporting its second day of no new Covid cases or deaths.

US stock indices had posted their sharpest loss in a month on Monday, led by Covid-19 fears and the absence of a much-awaited actionable relief bill. Prospects of recovery have dimmed for the world's largest economy.

With the United States's hotly-contested presidential election merely days away, OCBC Investment Research said investors may be inclined to just hold tight. This week also marks the end of the month and brings rebalancing flows from institutional investors. This has weighed on stocks, OCBC added, as institutional investors have lately favoured bonds.

Overall trading volume in the Singapore market stood at 1.17 billion shares worth S$937 million. Among the STI constituents, six counters were up and 21 down. The losses were led by UOB, OCBC and Singtel, which collectively shaved nearly 7 points off the STI.

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Singtel dipped 2 Singapore cents or 0.9 per cent to S$2.10. The counter was rated a "buy" by DBS Group Research given its undervalued core business. The research house said other catalysts include potential divestments and a strong chance of the Grab-Singtel joint venture snagging a full digital banking licence by end-year.

Ascendas Real Estate Investment Trust outperformed the market's key barometer, adding 5 Singapore cents or 1.7 per cent to S$3.08. The Reit drew a string of favourable ratings from brokers on Tuesday following its third quarter business update, which showed better occupancies and strong fundamentals including a robust balance sheet.

Catalist-listed Aspen (Group) Holdings surged 5.5 Singapore cents or 25 per cent to 27.5 Singapore cents on news that it plans to transfer to the Singapore Exchange's (SGX) mainboard.