The Straits Times Index (STI) looked set for a rebound of its own but ended up extending its losing streak to six sessions, as concerns over the spread of the coronavirus overshadowed policy support to combat the economic fallout.
The STI was trading more than 2 per cent higher in the early session even as US futures were pointing to a weaker opening in New York.
However, the local benchmark reversed course as European markets opened, eventually closing 28.91 points, or 1.18 per cent, lower at 2,425.62. Twenty-four of the STI’s 30 components ended the day in the red.
Elsewhere in the Asia-Pacific, equity benchmarks in Australia, China, Hong Kong, Japan, Malaysia, South Korea and Taiwan were markedly lower.
Overnight, the White House said it was seeking approval for a US$1.2 trillion (S$1.7 trillion) package that will include direct payments to households. Meanwhile, the US Federal Reserve launched a US$300 billion programme to purchase asset-backed three-month commercial papers to alleviate the credit crunch facing US businesses.
“However, these actions might not spark a sustainable rally in the stock markets,” said UBS Global Wealth Management regional chief investment officer Kelvin Tay.
The big gainer among STI counters was the Singapore Exchange, which closed 2.1 per cent up at $8.35. The bourse operator’s shares have outperformed the STI since reporting strong trading volumes last month amid volatile market conditions. Daily securities trading volumes for each trading day this month are consistently over this year’s average.
Local banks continued to trade lower. DBS dipped 0.6 per cent to $17.90, OCBC Bank closed 1.4 per cent lower at $8.49, and United Overseas Bank ended the day at $19.20, down 1 per cent.
Among other financials, Great Eastern Holdings fell 2.4 per cent to $17.77. Lower earnings for Great Eastern are likely to affect parent OCBC, Citi Research analysts said.
Real estate investment trusts (Reits) continued to be sold off by investors, with the iEdge S-Reit Index, which tracks property trusts here, down 25.06 points, or 2.3 per cent, to 1,062.82.
“The mix of fund redemptions and unwinding of leveraged positions have resulted in the indiscriminate selling of Singapore Reits,” said DBS Group Research in a report yesterday.
Trading volume here was 2.65 billion securities, with total turnover at $2.33 billion. Decliners trumped advancers 384 to 150.
