Singapore shares falter despite Wall Street gains

SINGAPORE shares declined with most regional peers on Wednesday (Nov 3), despite a third straight day of records for Wall Street's three main indices.

The benchmark Straits Times Index *STI ended 0.39 per cent or 12.68 points lower at 3,219.69.

Vishnu Varathan, head of economics and strategy at Mizuho Bank in Singapore, said: "Markets are largely in wait-and-see mode ahead of the US Fed meeting. The question is not so much one of tapering, which at this point seems a foregone conclusion, but more about the timing of future rate hikes."

With the exception of the Jakarta Composite Index, which was up 0.91 per cent, key benchmarks in the region ended in the red.

Hong Kong's Hang Seng Index was down 0.3 per cent; Seoul's Kospi was down 1.25 per cent, while the Kuala Lumpur Composite Index slipped 0.41 per cent. Japan markets are closed for a holiday.

While Wall Street's performance thus far has been providing a positive backdrop for equities, sentiments in the region are also revolving around weak growth momentum in China, said IG market strategist Yeap Jun Rong.

Premier Li Keqiang had on Tuesday (Nov 2) warned of economic downward pressure as a new wave of Covid-19 infections heightened the possibility of fresh curbs in Beijing.

Across the Singapore market, decliners outpaced advancers 246 to 199, after 1.59 billion securities worth S$1.23 billion changed hands.

Hongkong Land H78 was the best performing on the blue-chip index, gaining 1.6 per cent or US$0.09 to US$5.61. CGS-CIMB had raised the target price for Hongkong Land to US$6.30 from US$5.48, and maintained an "add" call on expectations of companies returning to offices in the city.

At the bottom of the table was Jardine Matheson Holdings J36 , which dipped 3.4 per cent or US$2 to US$57.64.

Yangzijiang Shipbuilding BS6 was the most traded on the STI, with over 26 million shares changing hands. Its shares ended flat at S$1.33.

UOB and OCBC ended the day in the red despite positive earnings results. UOB U11 fell 0.7 per cent or S$0.19 to S$27.20. It announced on Wednesday that the net profit for its third quarter rose 57 per cent to S$1.05 billion, on the back of healthy loan growth and sustained fee income, as well as lower credit allowance.

OCBC O39 slipped 0.8 per cent or S$0.09 to S$11.87. Its net profit for the third quarter rose by 19 per cent to S$1.22 billion on resilient business growth and lower allowances, the bank reported on Wednesday .

D05 was up 0.3 per cent or S$0.11 to S$32.21. It will announce its results on Friday (Nov 5).