STI inches up 0.3% on Monday, bucking regional trend

THE Straits Times Index (STI) closed up on Monday (Dec 16), while major regional indices closed lower.

The STI rose 0.3 per cent or 10.68 points to 3,821.03.

Across the broader market, decliners outnumbered advancers 333 to 183, after 866.9 million shares worth S$1.1 billion changed hands.

The trio of local banks had mixed results on Monday, with OCBC being the top gainer on the STI – closing up 1.4 per cent or S$0.24 at S$17. DBS was the next top gainer, rising 1.3 per cent or S$0.57 to S$44.31, while UOB was down 0.4 per cent or S$0.15 at S$37.20.

The biggest loser was Jardine Matheson, declining 2.5 per cent or US$1.08 to US$42.21 on Monday.

Across the region, major indices were down, with South Korea’s Kospi falling 0.2 per cent while Japan’s Nikkei 225 closed flat. Hong Kong’s Hang Seng Index was down 0.9 per cent and the FTSE Bursa Malaysia KLCI declined 0.1 per cent.

The Chinese retail sector reported sales growth rising to just 3 per cent year on year, the slowest pace in three months and a fall from the 4.8 per cent surge in October. In contrast, industrial output slightly outperformed expectations, up 5.4 per cent, a reflection of the slight but steady industrial resilience likely due to export front-loading, noted Stephen Innes, managing partner at SPI Asset Management.

The CSI 300 index retreated slightly, and investors’ trepidation was expressed in the benchmark 10-year yield dipping to an all-time low of 1.7 per cent. While the spectre of renewed trade tensions looms large, Chinese policymakers have pledged to “forcefully lift consumption”.

“Yet, despite these vocal commitments, the actual road map remains murky, with Beijing continuing to shy away from more radical fiscal stimuli, such as direct cash injections into consumer pockets – often dubbed as ‘helicopter money’,” said Innes.