STI falls on resurgence of Covid-19 cases globally

STI falls on resurgence of Covid-19 cases globally

Local shares joined their regional counterparts in a widespread sell-off yesterday following a resurgence of Covid-19 infections, notably within the United States.

The jittery temper left the Straits Times Index (STI) down 30.41 factors, or 1.2 per cent, to 2,574.10.

Losers outpaced gainers 297 to 179 with 2.48 billion shares value $1.03 billion altering palms.

The optimism that fuelled restoration from the March troughs has since been dented on the again of the rising danger of a second of wave of coronavirus infections in key cities.

Investors listed below are prone to keep on the sidelines given the uncertainty heading into the second quarter outcomes season in addition to the main target on the upcoming normal election, mentioned a DBS report.

The finest performer amongst STI constituents was Dairy Farm International, which rose 2 per cent to US$4.62.

At the underside of the STI’s desk was Yangzijiang Shipbuilding, falling 3.1 per cent to 92.5 cents.

ComfortDelGro additionally discovered itself among the many backside three, declining 2.6 per cent to $1.48. This got here after the transport big introduced on Friday that it expects to report a internet loss for the primary half of this 12 months.

The banking trio ended the day within the crimson. DBS fell 1.Four per cent to $20.52, UOB misplaced 1.Three per cent to $20.08, whereas OCBC Bank dipped 1.Four per cent to $8.91.

Genting Singapore was essentially the most closely traded, rising 0.7 per cent to 76.5 cents with practically 40 million shares altering palms.

Elsewhere within the Asia-Pacific area, benchmark indices principally ended decrease.

The Hang Seng Index shed 1.01 per cent and China’s Shanghai Composite Index slipped 0.61 per cent.

South Korea fell 1.93 per cent as traders sought secure belongings after a resurgence in world coronavirus cases hit restoration hopes. Japan misplaced greater than 2 per cent whereas Australian shares ended 1.5 per cent down to shut at a two-week low.

Malaysia bucked the development, with the bourse up 0.Four per cent.

“Equity market consolidation is broadly in line with our thinking that equities were getting ahead of economic fundamentals,” mentioned JP Morgan Asset Management strategist Tai Hui. “The rebound of the infection rate, especially in the US, shows that the road to full recovery is going to be long and that it will require medical solutions, such as a vaccine,” he added.

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