STI falls despite Asia gains and RHB upgrading Singapore banking stocks

SINGAPORE stocks closed lower on Monday (Nov 25), even as most regional markets ended in positive territory.

The benchmark Straits Times Index (STI) shed some earlier gains, slipping 0.4 per cent or 14.63 points to 3,731.39 at the close. Across the broader market, gainers outnumbered losers 280 to 271, after 1.6 billion securities worth S$2.9 billion changed hands.

The STI was dragged down by maritime vessel maker Yangzijiang Shipbuilding, which fell 2.2 per cent or S$0.06 to S$2.63.

The top performer among the constituents was supermarket and retail store operator DFI Retail Group Holdings, which closed 3.2 per cent or US$0.08 higher at US$2.58.

Banking stocks ended in the red. DBS declined 0.2 per cent or S$0.08 to S$42.25. UOB lost 1.2 per cent or S$0.42 to end at S$36.01. OCBC was down 1.6 per cent or S$0.27 at S$16.19.

Stocks that analysts are bullish on include Singapore Post (SingPost), which Maybank initiated coverage on with a “buy” rating and a S$0.74 price target. Shares of SingPost closed up 2.8 per cent or S$0.015 at S$0.55.

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RHB Bank upgraded banking stocks from neutral to overweight on Monday, with a “buy” call on UOB and DBS. It said that Singapore banking stocks could provide a “defensive shelter” for investors.

Regional markets ended mixed. Hong Kong’s Hang Seng fell 0.4 per cent, while Malaysia’s FTSE Bursa Malaysia Kuala Lumpur Composite Index gained 0.5 per cent, Japan’s Nikkei 225 ended 1.3 per cent higher, and South Korea’s Kospi rose 1.3 per cent. The MSCI Asia ex-Japan index was last up around 0.6 per cent.

Morgan Stanley said in a note on Monday that Chinese stocks have been drawing little interest. “Most investors viewed them as cheap but still facing risks related to the recent rise in stock prices, potentially higher tariffs, and ongoing debt deflation,” it wrote. “The overwhelming consensus was that while there may be long-term value in China stocks, there’s no clear catalyst to realise it over the near term.”

Wall Street ended higher on Friday, with all three major indexes posting weekly gains, considering how investors took comfort from data pointing to robust economic activity in the world’s biggest economy.

The S&P 500 gained 20.63 points or 0.4 per cent to end at 5,969.34 points, while the Nasdaq Composite gained 31.23 points or 0.2 per cent to 19,003.65. The Dow Jones Industrial Average rose 426.16 points or 1 per cent to 44,296.51.

In Europe, the benchmark index was propelled to a one-week high on Friday on the back of a surge in real estate stocks, while geopolitical tensions eased.

The pan-European Stoxx 600 jumped 1.2 per cent, its best daily performance in nearly two months. This contributed to a 1.1 per cent gain for the index for the week, breaking a four-week losing streak, which was the longest since May 2022.