STI ekes out slight gain on positive China data

THE Straits Times Index (STI) eked out a slight gain of 1.24 point or 0.05 per cent to finish Friday at 2,523.55 - which still translates to a 2.6 per cent retreat overall this week.

This came on the back of positive data from China showing that the country's industrial output rose 3.9 per cent in April from the year before, expanding for the first time this year as it gradually emerges from its coronavirus lockdown. 

The best performer  among the index constituents was Singapore Airlines (SIA), which recovered lost ground after non-stop sell-offs all week following its profit warning last week. 

The stock rose S$0.09 or 2.4 per cent on Friday, despite analysts' bearishness on the stock after it posted its largest quarterly loss of S$732 million, and a full-year net loss of S$212 million for the 12 months to March 31. SIA also warned on Friday that it is unlikely for passenger capacity to return to levels it was at before the Covid-19 crisis, within the next six to 12 months.

At the bottom of the STI's performance table was ground handler and in-flight catering provider Sats, the outlook for which has been almost as bad as SIA's following the imposition of travel curbs. 

On Thursday, it was also announced that Sats is one of four counters to be dropped from the MSCI Singapore Index on May 29, the others being ComfortDelGro, Sembcorp Industries and Singapore Press Holdings. Sats shares closed S$0.12 or 4.4 per cent lower at S$2.62 on Friday.

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Advancers nearly equalled decliners at 211 to 212 for the day, with 1.78 billion shares worth S$1.24 billion having changed hands.

The most heavily-traded stock was watch-listed precision manufacturer Broadway Industrial, after it announced that for its first quarter ended March 31, it reversed losses to post a net profit of about S$4.2 million. Its shares rose S$0.015 or 18.3 per cent to S$0.097 at Friday's close.

Hong Kong's and Indonesia's markets finished lower on Friday. The Hang Seng Index lost 0.14 per cent, while the Nikkei 225 Index gained 0.62 per cent. The FTSE Bursa Malaysia KLCI Index gained 0.44 per cent to finish at 1,403.44.