Large-cap stocks lead decline in Singapore market; STI down 0.3%

SINGAPORE – Declines in large-cap counters sent local shares down a smidgeon on June 28 as investors here and elsewhere looked in vain for leads on the last trading day of the quarter.

The air of calm was most evident on Wall Street overnight where the three key indexes eked out minuscule gains ahead of a crucial inflation report.

The S&P 500 added 0.1 per cent and the tech-focused Nasdaq put on 3 per cent – both nearing record highs – while the blue-chip Dow Jones Industrial Average advanced 0.1 per cent.

With that sort of muted inspiration it was no surprise that the Straits Times Index (STI) dipped 0.3 per cent or 10.55 points to 3,332.80 with losers pipping gainers 257 to 254 on trade of 1.3 billion securities worth $1.2 billion.

The STI’s biggest decliner was Sembcorp Industries, which fell 3.2 per cent to $4.81, while CapitaLand Integrated Commercial Trust lead the index, adding 1.5 per cent to $1.98.

The local banks were mixed: DBS lost 0.7 per cent to $35.79; OCBC was down 0.6 per cent to $14.43; but UOB rose 0.7 per cent to $31.33.

Bourses elsewhere ended higher. The Nikkei 225 in Tokyo gained 0.6 per cent, the Kospi in Seoul climbed 0.5 per cent, Hong Kong’s Hang Seng edged up 0.01 per cent, Malaysian stocks rose 0.3 per cent, and the Australian market closed 0.1 per cent higher.

IG market analyst Yeap Jun Rong noted that a higher-than-expected consumer price index in Japan offered some validation that the wage-price spiral sought by the Bank of Japan may be in effect.

Those gains, albeit modest, on Wall Street seem to reflect some optimism from dip buyers in place ahead of the personal consumption expenditure price data release, he said.

“That said, we may still expect a cautious lead-up with little appetite for risk-taking, given surprises in Canada’s and Australia’s inflation numbers this week,” Mr Yeap added. THE BUSINESS TIMES