Singapore shares end Wednesday flat amid directionless trading

LOCAL stocks held steady on Wednesday, as worries of a delay in the highly-awaited economic recovery grew, which in turn dampened investor sentiment across Asian markets.

The benchmark Straits Times Index rose 0.05 per cent or 1.57 points to finish the day at 3,133.31. Across the broader market, decliners outnumbered advancers 255 to 227, with 1.89 billion securities worth S$1.88 billion having changed hands.

Across the region, investors appeared cautious. The Nikkei 225 and Hang Seng Index each lost 2 per cent; the Jakarta Composite Index fell 1.5 per cent and the Kospi shed 0.3 per cent. The KLCI however bucked the trend, rising 0.5 per cent.

Oanda's senior market analyst Jeffrey Halley said: "Asian markets are in defensive mode today, as concerns rise that Covid-19 may delay the global economic recovery. With a lack of other drivers in financial markets at the moment, intra-day sentiment is driving price movements, and today's theme is definitely Covid-19."

He also noted that news that a container ship had run aground and was blocking the Suez Canal is likely to further dent investor sentiment "in export-sensitive Asian markets".

The two biggest gainers on Wednesday were tech plays. Venture Corp came out tops, adding 1.7 per cent or S$0.33 to S$20.39; electronics services provider AEM Holdings rose 6.6 per cent or S$0.26 to close at S$4.18.

Investor sentiment in AEM was buoyed by news that its key customer Intel would spend US$20 billion on two new plants in Arizona, and create a foundry business that will make chips for other companies. Intel's chief executive officer Pat Gelsinger has also pledged that the majority of the company's chips will be manufactured in-house.

On the other end of the spectrum, Jardine Strategic Holdings was the biggest loser. The counter fell 1.2 per cent or US$0.41 to US$33.84.

Aviation-related stocks were also among the top decliners. Singapore Airlines fell 2 per cent or S$0.11 to S$5.53; SATS ended the day at S$4.40, down 2 per cent or S$0.09.

The trio of lenders ended Wednesday mixed. DBS gained 0.4 per cent or S$0.10 to S$28.30; OCBC fell 0.1 per cent or S$0.01 to S$11.61, and UOB shed 0.2 per cent or S$0.04 to S$25.44.

Yangzijiang Shipbuilding was the most actively traded stock for the day, with 103.3 million shares changing hands. The counter closed at S$1.29, up 3.2 per cent or S$0.04. Other heavily traded counters were mm2 Asia, Oceanus and Jiutian Chemical.