SINGAPORE – Local shares took a tumble on Sept 25 as investors here and across the region took stock of China’s new stimulus measures.
The Straits Times Index (STI) declined 1.1 per cent or 39.47 points to 3,583.27, although gainers beat losers 302 to 289 on trade of 1.4 billion securities worth $1.4 billion.
Mapletree Pan Asia Commercial Trust was the STI’s biggest gainer, up 0.7 per cent to $1.47, possibly on optimism over the stimulus measures.
DFI Retail Group Holdings was the biggest loser, ending down 4.4 per cent to US$1.94.
The local banks continued trending south: DBS slipped 1.2 per cent to $38.37, UOB fell 1.4 per cent to $32.52, and OCBC dropped 1.5 per cent to $15.27.
Regional indexes were mixed on news that China’s central bank has instigated measures to support the faltering economy.
South Korea’s Kospi fell a steep 1.3 per cent and Australian shares closed 0.2 per cent lower, but Hong Kong investors liked the measures and sent the Hang Seng up 0.7 per cent.
They have also boosted mainland Chinese equities, with stocks there hitting a multi-month high on Sept 24, said IG market strategist Yeap Jun Rong.
While market watchers have anticipated intervention, the scale of the measures has provided more upside.
Wall Street was also in no doubt, with shares hitting new highs overnight. The S&P 500 added 0.3 per cent to close at a record for the 41st time this year. The Dow Jones Industrial Average rose 0.2 per cent – also at a record – while the Nasdaq put on 0.6 per cent.
Mr Yeap noted that the timing of the measures announcement “has been well-planned, coming before the National Day Golden Week, which may mark an attempt to lift consumer confidence and amplify spending during