STI back in red by 0.6% on US stimulus impasse, Brexit overhang, more virus cases

SINGAPORE shares sank back in the red on a listless trading day with the key Straits Times Index (STI) retreating 18.11 points or 0.64 per cent to 2,824.96.

Continued impasse over the US stimulus package, rising cases of Covid-19 and Brexit overhang were chief culprits, offsetting the vaccine cheer amid expectations that the roll-out in Asia could be relatively slower.

The gloomy mood came ahead of the European Central Bank monetary policy meeting - it is expected to extend its support measures as lockdowns pile on economic pressure. The losses also follow an overnight sell-off in US tech stocks after Facebook was accused of breaking antitrust law.

The picture was more or less the same across regional bourses except for China, which managed to post marginal gains, and Malaysia.

"Stocks look set to stumble and bumble along until Santa delivers a stimulus deal," said Axi's chief global markets strategist, Stephen Innes.

In Singapore, some 1.94 billion shares worth S$1.21 billion changed hands. DBS, Singtel and OCBC led the losses in the local bourse.

MM2 Asia inched up 0.1 Singapore cent or 0.63 per cent to 16.1 Singapore cents. The Singapore media entertainment and content firm, hard hit by the pandemic, has proposed a merger of its cinema business with Golden Village cinemas, which is owned by operated by a Hong Kong listed firm.

Nanofilm Technologies International was one of the day's stand-out performers, jumping 35 Singapore cents or nearly 10 per cent to S$3.88. The mainboard-listed firm, which made its trading debut on the Singapore bourse two months ago, said it will be included in the FTSE ST Small Cap Index, FTSE ST China Index and FTSE ST Singapore Shariah Index after market close on Dec 21.