Singapore shares mirror regional declines; STI down 1.1%

THE Straits Times Index (STI) continued to falter on Friday (Dec 20), mirroring regional indices.

The STI was down 1.1 per cent or 42.95 points at 3,719.93.

The top gainer was Mapletree Pan Asia Commercial Trust, which rose 0.8 per cent or S$0.01 to S$1.20.

The biggest loser was Jardine Matheson, down 2.3 per cent or US$0.96 at US$40.23.

Across the broader market, decliners outnumbered advancers 308 to 204 after 1.2 billion shares worth S$1.6 billion changed hands.

The trio of local banks continued the losing streak, with DBS closing down 1.3 per cent or S$0.58 at S$42.82. OCBC finished trading 1.7 per cent or S$0.29 lower at S$16.39, and UOB fell 1.9 per cent or S$0.70 to S$35.84.

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Across the region, major indices closed lower, with the Kospi down 1.3 per cent and the Nikkei 225 lower by 0.3 per cent. Hong Kong’s Hang Seng Index declined 0.2 per cent and the KLCI fell 0.5 per cent.

A hawkish Federal Reserve outlook left lingering concerns across major US indices on Thursday, noted Yeap Jun Rong, market strategist at IG. Stronger US economic data is fuelling another climb in US Treasury yields as the mantra “good news is bad news” has resurfaced.

Key data to look out for includes China’s one-year and five-year loan prime rate decision, although Yeap noted it might be a non-event. Rates are expected to remain unchanged, as authorities may continue to wait and see as US president-elect Donald Trump’s second term in office draws nearer.

The upcoming release of the US core personal consumption expenditure price index will also be closely watched. The data could determine whether US Treasury yields, an ongoing pressure point for the equities market, could see relief.

“Whether we see a Santa rally this year may hinge on the absence of any surprises in the data,” said Yeap.