The benchmark Straits Times Index (STI) sank into the red yesterday, declining 3.17 points, or 0.11 per cent, to close at 2,810.95.
Among STI constituents, the local banks made gains. United Overseas Bank climbed 0.8 per cent to close at $22.75, while OCBC Bank ended up 0.6 per cent at $10.05. DBS inched up 0.52 per cent to close at $25.32.
In a note on Tuesday, Jefferies equity analyst Krishna Guha said: “While the financial stability review highlights the pertinent risks… fiscal support and regulatory forbearance will help to tide over any adverse situation. Reflationary expectations and strong economic rebound may be priced in the steeper yield curve. All three banks will benefit in such a situation.”
At the bottom of the STI performance table, Thai Beverage slid 2.72 per cent to close at 71.5 cents.
Decliners outnumbered advancers 246 to 190, with 2.55 billion securities worth $1.17 billion changing hands.
The Hang Seng Index dipped 35.10 points, or 0.13 per cent, to 26,532.58, while the Shanghai Composite Index fell 2.56 points, or 0.07 per cent, to 3,449.38.
South Korean shares jumped to a record close, partly lifted by chipmakers after Micron Technology raised its revenue outlook for the first quarter of next year. The Kospi ended up 41.65 points, or 1.58 per cent, at 2,675.90.
OCBC Investment Research yesterday called South Korea a “bellwether for global trade”, a day after its trade ministry said overseas shipments rose 4 per cent from a year earlier.
“The strength of trade activity in recent months is giving a lifeline to the recovery, though the situation remains fragile as the world awaits developments in the race to get a coronavirus vaccine.”
