Singapore stocks eke out slight gains amid recession, inflation worries; STI up 0.1%

SINGAPORE shares ran out of steam and traded underwater through most of Tuesday (Jun 28), although an uphill struggle in the final hour paid off with marginal gains, as caution set in with lingering inflation and recession worries.

The Straits Times Index (STI) finished 2.67 points or 0.09 per cent higher at 3,140.21, following an overnight pause in US stocks’ relief rally. The Dow Jones Industrial Average fell 0.2 per cent and the tech-heavy Nasdaq lost 0.7 per cent, after the benchmark 10-year Treasury yield rose amid continued rate-hike speculation.

Most bourses across the Asia-Pacific posted gains, from Japan, China and Hong Kong to South Korea, Australia and Malaysia. Taiwan, an outlier, closed 0.7 per cent lower.

Their showing comes ahead of the release of some key US data, including a consumer confidence survey and housing-related figures, for further indication about the state of the world’s largest economy. A sharp uptick in oil prices lately is also weighing on markets, more so after an earlier correction in commodity prices fanned some hope that inflation may be easing.

Stephen Innes, managing partner at SPI Asset Management, said: “The recent global equities’ rebound is running out of steam despite positive month-end equity flows.” The markets also snubbed upbeat news out of China, the latest being an easing of quarantine rules.

“Lots of noise under the surface, but it is still about energy inflation, with the street also running with the recessionary baton,” he added.

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On the home front, some 1.30 billion securities worth S$1.07 billion were traded. Gainers outpaced losers, with 271 counters up and 221 down.

Watches.com was one of the most actively traded counters by volume with 22 million shares done. The counter fell S$0.003 or 16.7 per cent to S$0.015. Both Watches.com and Incredible Holdings have received notices of compliance by the Singapore Exchange’s regulatory arm over a series of transactions that would result in joint investments and cross-shareholdings.

Isetan (Singapore) on Monday (Jun 27) said its China-based associate will cease operations of 2 stores by year-end, following which Isetan will commence proceedings to wind up the associate beginning next year. Shares of the retailer rose S$0.03 or 0.8 per cent to end at S$3.74 on Tuesday.