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STI Pares Tuesday’s Gains


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by Donavan Lim

The benchmark Straits Times Index (STI) closed at 2,783.95 on Wednesday, surrendering 17.90 points to end below the 2,800 level.

“The local market lost 0.6 per cent Wednesday after starting the week in winning fashion. But most savvy traders knew such a positive start was unlikely to continue as the global economic landscape hasn’t improved in the last 48 hours,” said Justin Harper of IG Markets in Singapore.

A strong overnight closing on the US markets gave little impetus to buyers as the eurozone crisis continued to weigh. Further, expectation of a massive stimulus measures by China waned following a report by Xinhua News Agency.

Decliners outnumbered gainers 22 to eight while one counter remained unchanged.

Olam International closed 1.2 per cent lower as investors ignored news of its acquisition of a sugar milling asset. A report by OCBC Investment Research lowered the target price of the counter to S$1.86 from S$2.24, citing growing uncertainty in Europe.

In contrast, other commodities counters such as Noble Group, and Golden Agri-Resources chalked up gains.

Elsewhere, property counters City Development closed at S$9.97, 1.8 per cent lower while Global Logistics Properties closed 0.8 per cent lower at S$2.12.

Traders said investors are likely to stay on the sidelines or move into defensive play against the backdrop of the ongoing eurozone crisis.