STI opens lower and closes still down 1.88 points

The Straits Times Index (STI) opened lower on Wednesday after Singapore further extended the partial lockdown period by four weeks, but clawed back gains over the day to close just 1.88 points lower or 0.07 per cent at 2,550.04.

About 2.34 billion securities worth S$1.53 billion were traded. Gainers outnumbered losers 235 to 183.

CGS-CIMB has a year-end price target of 2,050 for the STI. CGS-CIMB analyst Lim Siew Khee wrote in a note: "As companies start to update on quarterly progress and give their outlook this week, we believe reality could sink in as a great deal of uncertainty remains in areas such as banks, small caps and cyclicals.

"We also see profit taking opportunities in names that could be challenged in a recessionary environment, including gaming, travel-related stocks and developers. We expect market earnings per share to decline 17.5 per cent in 2020 and rise 9 per cent in 2021, and see more downside to our 2021 forecasts as the second-order effects of a recession kick in."

Medtecs International was the most actively-traded counter, jumping 31.31 per cent or 0.031 to S$0.13 on volume of 184.3 million.

Singapore Exchange (SGX) was the top gainer, rising 3.28 per cent or S$0.33 to S$10.39 on expectations of strong growth when it reports its third-quarter results before market open on Friday (April 24).

Hotel Royal was the top loser, falling 10 per cent or S$0.30 to S$2.70 on 100 units traded.

Regional markets also lacked direction. The Hang Seng rose 0.42 per cent, the KLSE rose 0.01 per cent, the Nikkei was down 0.74 per cent and the Shanghai Composite rose 0.60 per cent.