STI snaps five-day losing streak
Local traders buy on the dip, with gainers outpacing losers 254 to 154
Singapore traders have bought on the dip, putting the local market out of its misery yesterday.
The Straits Times Index (STI), while battered by poor sentiment amid global trade tensions, snapped its five-day losing streak and edged up by 14.55 points, or 0.44 per cent, to 3,315.90.
The index took its cue from a mild recovery elsewhere in Asia - but is still down by 2.56 per cent from the start of the year.
IG Asia market strategist Pan Jingyi said: "Prices appeared to have adopted a new range of trade between the 3,300 level and the support-turned-resistance at 3,340."
Gainers outpaced losers 254 to 154 on the full bourse, with 1.9 billion shares changing hands for a value of $1.18 billion.
Ms Margaret Yang, an analyst at CMC Markets Singapore, said: "Higher oil prices overnight may be a positive factor behind this move. However, this could be a temporary 'technical rebound' against the backdrop of escalating trade tensions and global sell-off."
Sembcorp Marine put on six cents, or 3.11 per cent, to $1.99, and Keppel Corporation closed higher by seven cents, or 0.99 per cent, at $7.12.
Lower US commercial crude inventories have bumped up oil prices in the run-up to Opec's Friday meeting. Ezion Holdings added 0.3 cent, or 3.7 per cent, to 8.4 cents, with 53.4 million shares traded.
But companies with Chinese exposure still saw bearishness amid uncertainty over economic sabre-rattling between the US and China.
Mr Raymond Ma, portfolio manager at Fidelity International, said in a note: "US-China trade frictions remain broadly negative for the market and for investor sentiment, and are likely to weigh on forward earnings, given the ongoing uncertainties coupled with a high base effect when compared with last year's performance."
Wilmar International, a soya bean crusher in China, shed five cents, or 1.58 per cent, to $3.12.
Singapore Airlines slid four cents, or 0.36 per cent, to $11.07 after UOB Kay Hian downgraded it to "hold" and slashed fair value. The house cited factors such as a potential drop in exports to China.
Still, China Aviation Oil grew by eight cents, or 5.26 per cent, to $1.60, after announcing the planned divestment of its stake in China Aviation Oil Xinyuan Petrochemicals, as CGS-CIMB maintained its "add" rating.
Meanwhile, index technology counter Venture Corporation shed 28 cents, or 1.51 per cent, to $18.21. The drop brings it to a new low in the year to date.
Singapore Exchange noted in a report that the bourse's 10 largest mainboard-listed technology stocks by market value have been "comparatively volatile with median 12-month volatility at 43.9 per cent".
Financial and information technology firm Silverlake Axis ticked up by half a cent, or 0.96 per cent, to 52.5 cents.
RHB Securities analysts Jarick Seet and Lee Cai Ling stuck to a "buy" call, writing "we think earnings will surge strongly over the next two years, especially in FY2019" on recent contract wins.
Satellite technology company Addvalue Technologies, which has mutually ended a stock placement agreement with KGI Securities (Singapore), added 0.2 cent, or 6.06 per cent, to 3.5 cents.
The aborted deal would have seen up to $10 million raised.
Meanwhile, beleaguered commodities trader Noble Group surged by 3.4 cents, or 62.96 per cent, to 8.8 cents on a turnover of 39.6 million shares, after Abu Dhabi's Goldilocks Investment gave its shareholder stamp of approval to a contested financial restructuring plan.
For full listings of SGX prices, go to http://btd.sg/BTmkts
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