THE Straits Times Index (STI) continued the losing streak on Wednesday (Dec 18), while regional indices had mixed results.
The STI was down 0.5 per cent or 20.31 points at 3,779.62. Across the broader market, advancers outnumbered decliners 258 to 224, after 783.4 million shares worth S$905 million changed hands.
The trio of local banks continued to fall on Wednesday. DBS, the biggest loser, declined 1.9 per cent or S$0.84 to S$43.37. OCBC finished 0.7 per cent or S$0.12 lower at S$16.83, while UOB fell 0.7 per cent or S$0.25 to S$36.45.
The top gainer was the Singapore Exchange, up 2 per cent or S$0.24 at S$12.55.
Across the region, major indices were mostly up. The Kospi Composite Index climbed 1.1 per cent, while Hong Kong’s Hang Seng Index increased 0.8 per cent. The FTSE Bursa Malaysia KLCI rose 0.1 per cent. However, the Nikkei 225 closed 0.7 per cent lower.
The US markets have pulled back, potentially anticipating the next federal open market committee meeting to reflect a more hawkish US Federal Reserve. Caution seems to rule the roost, noted Vishnu Varathan, head of economics and strategy for Asia at Mizuho Bank.
He added that while the Fed seems on course to cut interest rates by 25 basis points, it will likely be couched in caveats about slower pace of cuts rather than unfettered easing.
Meanwhile, China appears to be fighting bears rather than stoking bulls. Too little, too late seems to be the fear with Beijing’s policy push, and doubts remain on whether wiggle room can be exploited in a second Donald Trump presidency, he noted.
“The imminent confrontation on trade and bias for antagonism as leverage does not bode well for China and yuan assets,” said Varathan.
