STI falls 1.1% as Covid-19 case count threatens to impede next phase of reopening

SINGAPORE stocks ended in the red on Wednesday, as investors trod a cautious line amid news that the multi-ministry task force tackling Covid-19 is evaluating the timing and scope of the second stage of the economy's reopening.

Finance Minister Lawrence Wong in Facebook and Instagram posts on Wednesday said this review was in light of a major Covid-19 cluster in Bukit Merah and other new Covid-19 cases.

The benchmark Straits Times Index fell 1.1 per cent or 35.3 points to finish the day at 3,139.57. Across the broader market, decliners outnumbered advancers 338 to 148, after some 2.06 billion securities worth S$1.36 billion changed hands.

It was also a sea of red across the region as investors cut their exposure ahead of the policy-setting Federal Open Market Committee's (FOMC) meeting scheduled for Wednesday night, said Oanda's senior market analyst Jeffrey Halley.

The Hang Seng Index fell 0.7 per cent; the Nikkei 225 declined 0.5 per cent, while the KLCI lost 0.2 per cent. The Kospi bucked the trend, rising 0.6 per cent.

But Mr Halley figures the decline is unlikely to last for long. "Assuming no surprises and the FOMC remains suitably dovish, I can see no reason why the gentle rally in equity markets will not resume into the remainder of the week."

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Among the 30 constituent stocks, only Y92 : Y92 0% ended the day in the black. The counter closed at 69.5 Singapore cents, up 0.7 per cent or 0.5 Singapore cent.

The biggest constituent decliner was C6L, as investors shied away from the stock. Mr Wong had said at CNBC's Evolve Global Summit on Wednesday afternoon that he was "somewhat less sanguine about the prospects for air travel" compared to trade. The counter fell 3.2 per cent or S$0.16 to S$4.92.

On the broader Singapore bourse, precision manufacturer BJW was the biggest gainer. The stock climbed 12.3 per cent or S$0.30 to finish the day at S$2.75. AGS : AGS 0% was another gainer, adding 5.4 per cent or S$0.07 to S$1.36.

On the other hand, luxury watch retailer C41 was the top decliner, falling 7.6 per cent or S$0.22 to S$2.69. V03 : V03 0% was another loser. The counter closed at S$18.87, down one per cent or S$0.18.

5LY was the most actively traded counter by volume, with some 159 million shares changing hands. RHB initiated coverage on the stock with a "buy" call and target price of 4.1 Singapore cents, citing the company's diversification into servicing the renewable energy sector. The counter closed at S$0.03 on Wednesday, up 3.5 per cent or 0.1 Singapore cent.