THE Straits Times Index (STI) fell on Wednesday (Sep 25), even as the broader market saw more advancers than decliners.
The STI closed 1.1 per cent or 39.47 points lower at 3,583.27, continuing to cede gains after the high on Monday. Across the broader market, advancers beat decliners 302 to 289, with 1.4 billion securities worth S$1.4 billion changing hands.
On the STI, Mapletree Pan Asia Commercial Trust was the biggest gainer, closing 0.7 per cent or S$0.01 higher at S$1.47, possibly riding on optimism over China’s stimulus measures.
DFI Retail Group Holdings was the biggest loser, reversing Tuesday’s gains. The counter closed 4.4 per cent or US$0.09 lower at US$1.94.
The trio of local banks continued trending downwards. DBS slipped 1.2 per cent or S$0.46 to S$38.37, UOB fell 1.4 per cent or S$0.47 to S$32.52, and OCBC dropped 1.5 per cent or S$0.23 to S$15.27.
Across the region, major indices were mixed, with South Korea’s Kospi falling 1.3 per cent, Hong Kong’s Hang Seng rising 0.7 per cent, and the KLCI gaining 0.2 per cent.
The recent easing measures by China have given a boost to Chinese equities, with stocks there hitting a multi-month high on Tuesday, said Yeap Jun Rong, market strategist at IG. While market watchers have anticipated intervention by Chinese authorities, the scale of the measures has provided more upside.
“The timing of the announcement has been well-planned, coming before the National Day Golden Week, which may mark an attempt to lift consumer confidence and amplify spending during the festive season,” he said.
While the stimulus measures may offer a shot to the arm to China’s economy, whether the recovery can be sustained remains to be seen. China’s economic woes might revolve around an issue of confidence rather than liquidity, Yeap noted.
