Singapore shares end flat amid mixed Asia markets as investors digest China’s monetary easing plans

SINGAPORE stocks closed unchanged on Friday (Dec 13), as China pledged further monetary easing to brace itself for more trade tensions with the United States.

The benchmark Straits Times Index (STI) inched up 0.03 per cent, or 1.08 points, to 3,810.35.

Across the broader market, losers outnumbered gainers 276 to 199, as 793.5 million securities worth S$910.2 million changed hands.

YZJ Shipbuilding topped the STI and was among the most actively traded counters in terms of volume, rising 2.5 per cent or S$0.07 to S$2.88, with 35.2 million shares transacted.

The index’s biggest loser was Jardine Matheson, which retreated 2.6 per cent or US$1.16 to US$43.29.

Banking stocks were varied at the close. UOB rose 0.3 per cent or S$0.10 to S$37.35, while OCBC declined by 0.2 per cent or S$0.04 to S$16.76. DBS also fell, down 0.1 per cent or S$0.06 at S$43.74.

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RHB on Friday said that a potential DBS or OCBC takeover of Bank Pan Indonesia would add 2 to 3 per cent to their bottom lines. DBS and OCBC are said to be among the Asian banks interested in buying the Jakarta-listed lender, which is also known as Panin Bank.

Other Asia-Pacific markets were largely in negative territory.

Japan’s Nikkei 225 slid 1 per cent, while South Korea’s Kospi Composite Index was up 0.5 per cent. The Bursa Malaysia Kuala Lumpur Composite Index climbed 0.4 per cent.

Chinese stocks sharply fell despite the news of more stimulus ahead. Hong Kong’s Hang Seng Index and the Shanghai Composite were both down more than 2 per cent.

China concluded its Central Economic Work Conference (CEWC) on Thursday, and pledged to increase the budget deficit, issue more debt and loosen monetary policy to maintain stable economic growth so as to prepare for increased trade tensions with the US.

ANZ Research said that what resulted from this conference is not a “new deal”.

“Both the Politburo and CEWC look more like a policy recap of the stimulus measures in the past months rather than a new supporting deal to the economy,” it said in a note on Friday.

“On the monetary policy front, the change of... stance to moderately loose is a belated confirmation of the policy moves since September.”