Singapore market dips on US-China issues

Renewed pain points between the US and China saw the Singapore stock market dip early, from which it failed to recover as trading remained muted ahead of the US Federal Reserve policy decision.

The Straits Times Index (STI) fell by as much as 0.7 per cent before closing 13.26 points or 0.4 per cent lower at 3,207.66.

Even though 11 of the STI's 30 constituents ended the day in the black, CMC Markets' Margaret Yang noted that the benchmark index "managed to hold above the key support level at 3,200".

Trading clocked in at 903.21 million securities, about 65 per cent of the daily average over the first two months of 2019. Total turnover came to $974.99 million, 95 per cent of the January-to-February daily average. Decliners outnumbered advancers 198 to 160.

Elsewhere in Asia, trading was mixed with the markets in Australia, South Korea, China, Hong Kong and Malaysia closing lower.

However, Japan closed higher.

Investors in other Asian markets were also on the sidelines, awaiting the outcome of the Fed meeting.

With broad expectations for a dovish Fed, IG market strategist Pan Jingyi noted that sentiment could be punctured by "the small chance that the Fed continues to see two or more hikes this year".

Thomson Medical Group was the bourse's most active counter with 47 million shares traded.

Shares in the medical group ended the session flat at 7.8 cents.

There were six trades of value over $150,000 on the day.

This led a trader to postulate that investors could have been in a tussle to keep the counter either below or above eight cents, the strike price of an outstanding warrant that expires on April 24.

Thomson Medical warrants closed at 0.1 cent.

"Those keen to convert the warrants to underlying shares will enjoy the dividend, and the company will get a chance to gain more funds," the trader said.

Yangzijiang Shipbuilding was the blue chip index's most traded, with the counter adding two cents or 1.3 per cent to $1.52 with 34.4 million shares changing hands.

Yangzijiang has been on an uptrend. UOB Kay Hian's vice-president of equities and financial products Brandon Leu suggested that the shipbuilder "has been well received by the market as a proxy to the recent roaring Chinese stock market".

He added that the counter has attracted more attention since trading above its key resistance of $1.47 on Tuesday.

Among the big gainers on the day was Best World International.

The skincare maker and distributor surged $0.29 or 12.6 per cent to close at $2.60 on news that it has appointed PwC to examine its franchise model.

Best World has gained 15 per cent on the week.

Going by value of trades done, DBS Group Holdings saw $67.79 million traded - 7 per cent of the bourse's value of securities traded - across 2.68 million shares.

The bank's shares fell seven Singapore cents or 0.3 per cent to S$25.35.

STI constituent Dairy Farm International shares jumped US$0.33 or 4.5 per cent to US$7.74 following a "buy" recommendation by RHB Research Institute.

RHB said Dairy Farm shares had reached a trough, presenting an opportunity for long-term investors to accumulate the stock.

Oxley Holdings closed at $0.32, down one cent or 3 per cent after a planned sale of its Mercure and Novotel Hotels to Gracious Land Pte Ltd for $950 million fell through.

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