SINGAPORE – Local stocks, on a losing streak since the start of 2024, regained some bounce on Jan 5 amid mixed trading in the region.
The benchmark Straits Times Index (STI) rose 0.3% (10.29 points) to 3,184.3, closing higher for the first time this year after three days of decline. However, STI still fell 1.7% for the week, ending its four-week winning streak.
After 1.2 billion shares worth $836.3 million traded, decliners outnumbered advancers 288 to 250 in the overall market.
Yangtze Shipbuilding’s stock led the index gainers, rising 2.7% to close at $1.55.
Other top gainers included Venture Corp, which rose 1.2%, and Sembcorp Industries, which rose 1.1%. Regional banks also rose, with OCBC, DBS and UOB rising 0.5-0.9%.
Singtel was the most active counter by value, with around 44.5 million shares worth $104.9 million changing hands. The counter fell 1.3% to close at $2.35, finishing at the bottom of the STI earnings table.
Elsewhere in the region, major indexes in Hong Kong, Shanghai, South Korea and Australia ended in the red. However, Japan’s Nikkei Stock Average and Malaysia’s KLCI rose 0.3% and 0.7%, respectively, to close higher.
This follows mixed action on Wall Street on January 4, with the Dow Jones Industrial Average ending flat, while the S&P 500 and Nasdaq Composite both ended lower.
Stephen Innes, managing partner at SPI Asset Management, said Wall Street traders trying to decipher the medium- to long-term direction of markets based on early trends are faced with significant macroeconomic uncertainty. He pointed out that the task was complicated by the
“Oil price fluctuations are in the spotlight due to the ongoing conflict in the Middle East, and the unfortunate natural disaster in Japan may have changed the Bank of Japan’s policy normalization plans,” he said.
“Furthermore, concerns persist about mainland China’s consumption dynamics and the potential impact of past policy mistakes on consumer sentiment, further complicating forecasts for China’s stock market.”
He also said the December U.S. jobs report, scheduled to be released later on Jan. 5, could have an impact on market sentiment.
He said an overly strong report would coincide with expectations for a rate cut in the second half of 2024, which could lead to a setback for stocks. “On the other hand, if the report is in line with expectations or slightly below expectations, it could strengthen the view that a rate cut is imminent and trigger a bull market.”