STI closes lower despite strong domestic exports data

SINGAPORE shares retreated alongside most regional peers on Wednesday (Nov 17) despite positive exports data.

The Straits Times Index (STI) *STI dipped 0.19 per cent or 6.12 points to 3,232.68.

The weaker showing came despite Singapore posting higher non-oil domestic exports for October.

"The ongoing strength in non-electronic shipments supports the resilience in overall non-oil domestic exports towards supply chain disruption and the slowing growth in China," said IG market strategist Yeap Jun Rong.

"That said, after surging as much as 9 per cent from its September's bottom, the Singapore index may be seeing some near-term distribution after the catalysts from economic reopening and earnings season have been priced," he said.

Elsewhere in the region, investors struggled to track overnight gains on Wall Street. New York's 3 main indices ended higher amid a strong set of retail sales data and positive earnings from shopping giants.

The positive set of data suggests consumers are willing to absorb higher costs for now, with higher wages and a positive economic outlook offsetting concerns of price pressures, according to Yeap.

In Asia, however, investors are spooked by rising inflation, which could potentially prompt the Federal Reserve to act sooner to keep prices under control.

Hong Kong's Hang Seng Index dipped 0.25 per cent; South Korea's Kospi was down 1.16 per cent, Japan's Nikkei 225 ended 0.40 per cent lower. Meanwhile the Kuala Lumpur Composite Index closed 0.15 per cent higher and the Jakarta Composite Index was up 0.37 per cent.

Across the Singapore market, decliners outpaced advancers 259 to 176 after 1.69 billion shares worth S$1.15 billion changed hands.

The best-performing stock on the STI was Yangzijiang Shipbuilding BS6 with shares gaining 1.6 per cent or S$0.02 to S$1.29.

At the bottom table was UOL Group U14 which shed 1.5 per cent or S$0.11 to S$7.08.

Singtel Z74 was the most heavily traded by volume on the blue-chip index with over 27 million shares changing hands. Its shares were down 0.8 per cent or S$0.02 to S$2.52.