STI dips despite optimism of rebound in some quarters

THE Straits Times Index ended the first trading day of the week at 2,629.69, down 5.14 points or 0.2 per cent from Friday, despite optimism for a "sustained rebound" on prospects of an imminent economic recovery by Morgan Stanley Research in a Monday report following the city-state's entry into Phase Two of its reopening last week.

Decliners outnumbered gainers 285 to 135, with 1.21 billion securities worth S$1.21 billion traded.

Among the index constituents, real estate company Hongkong Land rose the most - up 14 US cents or 3.46 per cent to US$4.19, on positive news late last week of a tie-up with Asia Bankers Club and developer An Khang to introduce The Marq, a new luxury development in Ho Chi Minh City, Vietnam.

Shares of Singapore Exchange (SGX) fell the most - by 17 Singapore cents or 2.05 per cent to S$8.12, pulling back from a steep surge last Friday.

The stock has lost the exuberance it had in April and May, following news in late May that it will discontinue most of its MSCI equity index futures and options contracts, while its rival, the Hong Kong bourse, at the same time struck a deal for a suite of MSCI equity indexes similar to those that were offered on the SGX.

The most active counter, crushed limestone producer GCCP Resources, added 0.1 Singapore cent or 10 per cent to S$0.011, on news last week that its substantial shareholder Lim Soon Foo beefed up his stake from 4.66 per cent to 6.14 per cent in a market transaction on June 12.

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Regional markets lacked direction. The Hang Seng fell 0.54 per cent, the KLCI climbed 0.26 per cent, the Shanghai Composite dipped 0.08 per cent, while the Nikkei lost 0.18 per cent.