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STI slips 1.05%, ending five-day winning streak

Singapore shares closed decrease yesterday, snapping a five-day winning streak with the important thing Straits Times Index (STI) dropping 28.19 factors, or 1.05 per cent, to complete at 2,661.42.

Trading sentiments have improved currently, as extra international locations re-open their economies and ease lockdown restrictions. But warning has prevailed, as a lockdown returned within the Australian metropolis of Melbourne.

While exercise stays weak, traders have been specializing in the tentative indicators of encouraging information, and appear hopeful of a extra vital pickup within the third quarter of this 12 months.

Schroders wrote in a report: “However, beyond this point, uncertainty abounds. Our view is that the coronavirus is contained, but epidemiologists stress the risks of a second wave of infections. At the same time, markets remain volatile and sensitive to geopolitical headlines and resurgent US-China tensions.”

IG market strategist Jingyi Pan expects some warning in the direction of the later a part of the week, with the large banks’ earnings name due subsequent week.

“Q1 earnings had captured only a small part of the Covid-19 hit to the US economy, with the dent mostly absorbed into Q2 thus far. Despite substantial provisions made, a true picture will arrive only with the earnings results,” she stated.

In Singapore, turnover was 2.three billion shares value $1.24 billion, from Monday’s 1.86 billion shares value $1.17 billion. Of the STI constituents, 23 counters posted losses and 5 chalked up good points. The losses within the native bourse have been led by the three massive banks and property stalwart CapitaLand, which collectively lopped off over 17 index factors from the STI.

On the information entrance, Spackman Entertainment Group was the third-most lively counter, with 143 million shares value $1.5 million performed.

The counter completed the day 10 per cent up at 1.1 cent. Spackman stated it has inked a non-binding letter of intent with a possible purchaser’s consultant for its main asset, manufacturing home Zip Cinema.

Top Glove Corp added 1.5 per cent to $6.60. In a report launched yesterday, AmBank Research maintained an “overweight” score on Malaysia’s glove sector and stated it expects the gross sales quantity and common promoting worth of gloves to “grow exponentially” within the second half of this 12 months amid the Covid-19 pandemic.

Most different regional bourses additionally took a breather from the current robust rally, though China’s Shanghai Composite prolonged good points by one other 0.37 per cent yesterday.

Japan fell 0.44 per cent and South Korea ended 1.09 per cent down.

Hong Kong shed 1.38 per cent, whereas Malaysia misplaced 0.65 per cent.

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