Singapore stocks slip amid Europe, China uncertainties; STI falls 0.6%

THE Straits Times Index (STI) fell 0.6 per cent or 17.99 points to close at 3,152.30 points on Thursday (Jul 21), as uncertainties in Europe and China weighed on market sentiment.

In the wider Singapore market, losers edged out gainers 235 to 223, with 800.8 million shares worth S$816.7 million changing hands.

IG market strategist Yeap Jun Rong said: “Lingering caution persists for Chinese equities amid both virus and property sector risks.”

Investor focus shifted to Europe, where the European Central Bank (ECB) is expected to raise interest rates for the first time in over a decade as it announces its latest monetary policy decision.

The anxieties resulted in mixed trading across key Asian markets, despite continued gains on Wall Street overnight.

Hong Kong’s Hang Seng Index fell 1.5 per cent and the Jakarta Composite Index dipped 0.2 per cent; South Korea’s Kospi Composite Index and the FTSE Bursa Malaysia KLCI each gained 0.9 per cent, and Japan’s Nikkei 225 climbed 0.4 per cent.

“US equity indices continue to build on their gains overnight, as subscribers’ resilience from Netflix paved the way for further outperformance in growth stocks, while defensive sectors underperformed amid the improved risk environment,” Yeap said.

In Singapore, the top performer among the blue-chip stocks was Jardine Matheson Holdings (JMH), which rose 1.4 per cent or US$0.77 to close at US$55.04. JMH was 1 of only 5 STI constituents that finished higher on Thursday.

At the bottom of the table was Sembcorp Industries, which lost 2.3 per cent or S$0.07 to end at S$2.97.

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Thai Beverage was the most heavily traded counter on the STI for the second consecutive day, with 21.5 million shares traded. The counter closed 0.8 per cent or S$0.005 lower at S$0.63.

The trio of local lenders finished in the red. DBS shed 0.6 per cent or S$0.18 to close at S$30.67, UOB fell 1 per cent or S$0.27 to S$27.10, and OCBC ended 1.5 per cent or S$0.17 lower at S$11.38.