STI gives up early gains to close 0.1% lower at 2,525.61

SINGAPORE shares reversed from their gains in the morning session to close 0.1 per cent or 3.03 points lower on Wednesday at 2,525.61, as markets continued to remain cautious about US pre-election fiscal stimulus talks.

Stephen Innes, chief global markets strategist at AxiCorp, said: "It was evident from the get-go in Asia this morning that a distinct reflationary theme was building, confirming that hope for near-term stimulus is growing.

"The market is in a repetitive mode as traders try to shake the final mind-war around inaccurate polls."

There have also been talks about too much focus being placed on US fiscal stimulus packages, which have in turn fuelled investor optimism over the past few weeks.

"The one lesson we can take is that the US fiscal stimulus package remains the only thing financial markets are concentrating on, to the exclusion of everything else," said Oanda Asia-Pacific senior market analyst Jeffrey Halley in a note.

"I will reiterate the risks though, of material corrections in asset markets if negotiations or the US Senate disappoint," he added.

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On the local bourse, decliners outnumbered advancers 243 to 182, after some 1.32 billion securities worth S$1.25 billion changed hands.

Glove makers were among the biggest losers for the day. Riverstone Holdings fell 4.9 per cent or S$0.19 to S$3.69; Top Glove lost 5.5 per cent or S$0.17 to close at S$2.93, while UG Healthcare shed 7.5 per cent or 7.5 Singapore cents to close at 92.5 cents. Medical apparel maker Medtecs International, too, fell, losing 6.3 per cent or S$0.08 to end the day at S$1.19.

Among the constituent stocks, City Developments Limited emerged the biggest decliner after its non-executive and non-independent director Kwek Leng Peck left the company following disagreements with its board and management. The counter closed 7.2 per cent or S$0.55 lower at S$7.08.

On the other end of the spectrum, Jardine Matheson Holdings and Jardine Strategic Holdings were the biggest advancers. The former rose 1.3 per cent or US$0.54 to close at US$42.49; the latter closed at US$20.68, up 1.62 per cent or US$0.33.

The trio of lenders ended the day mixed. OCBC gained 0.5 per cent or S$0.04 to close at S$8.75. UOB finished the day 1.5 per cent or S$0.29 higher at S$19.92. DBS, however, fell 0.2 per cent or S$0.05 to S$21.25.

Over on Wall Street, indices booked gains as optimism over stimulus deals fuelled investor sentiment. The Dow Jones Industrial Average gained 0.4 per cent; the S&P 500 rose 0.5 per cent, and the Nasdaq Composite gained 0.3 per cent.

Regional markets ended the day mixed. The KLCI ended the trading day 1.2 per cent lower, and the Shanghai Composite Index fell 0.1 per cent. The Nikkei 225 and Hang Seng Index rose 0.3 per cent and 0.8 per cent respectively.