Singapore shares close lower on Thursday amid lingering inflation, tapering worries

LOCAL stocks ended Thursday in the red as traders approached markets cautiously. Notable factors that weighed on investor sentiment were inflation levels that could exceed forecasted levels, as well as a faster tapering by the US Federal Reserve.

The benchmark Straits Times Index fell 0.2 per cent or 5.63 points to wrap Thursday's trading session at 3,221.52. The daily turnover came in at some 1.3 billion securities worth S$944.7 million. Decliners outpaced advancers 235 to 208.

Vishnu Varathan, head of economics and strategy at Mizuho Bank, said the "smoking guns" for a distinctly more hawkish turn at the Federal Open Market Committee's December meeting - namely in terms of quicker tapering and rate hikes - were "strewn all over the place".

However, he cautioned that investors should pay attention to the details. "(An) inflation run-up accentuated by pandemic snags and spending patterns, even with some lingering reflation elements, will only trigger a front-loading of rate hikes," he said.

Across the region, markets were generally mixed. The Nikkei 225 rose 0.7 per cent, while the Hang Seng Index and Jakarta Composite Index each added 0.2 per cent. The Kospi lost 0.5 per cent, and the KLCI shed 0.3 per cent.

On the local bourse, luxury watch retailers Cortina Holdings C41 and The Hour Glass AGS were the top gainers on Thursday. Cortina added 6.1 per cent or S$0.25 to S$4.35; The Hour Glass rose 9.1 per cent or S$0.19 to S$2.29.

Tech play AEM AWX was another top advancer, gaining 2.6 per cent or S$0.13 to S$5.08.

DBS D05 was the biggest decliner, shedding 0.8 per cent or S$0.27 to S$32.11. OCBC O39 fell 0.2 per cent or S$0.02 to S$11.74, and UOB U11 advanced 0.3 per cent or S$0.08 to S$27.56.

Hongkong Land H78 , a member of the Jardine group of companies, was another one of the biggest losers on Thursday. The counter slipped 1.2 per cent or US$0.07 to close at US$5.63.

HGH Holdings 5GZ was the most heavily traded counter on Thursday, with some 54.1 million shares changing hands over the course of the day. The stock closed flat at S$0.025.

Other actively traded counters included Sembcorp Marine S51 , Hatten Land PH0 and Singte Z74 l.