Local Stock Market Falls Over 0.8% in Early Trading on Thursday
2023-02-23 05:00uSMART

Source: Lianhe Zaobao

By Yue Kaixin


(Straits Times Index) - Bank stocks fell, dragging down the local stock market in early trading on Thursday, February 23. As of 12:00 p.m., the Straits Times Index in Singapore fell 27.48 points or 0.83% to 3,272.56 points, with a high of 3,303.44 points and a low of 3,271.97 points during the trading session.


uSMART Securities (Singapore) Pte. Ltd market strategist James Ooi analyzed that the index is expected to continue to decline in the short term, and the next support level for the STI is at 3,200 points.

James Ooi, uSMART market strategist at uSMART Securities (Singapore) Pte. Ltd, said in an interview with Lianhe Zaobao that the profit and wealth management figures released by United Overseas Bank (UOB) were below market expectations, leading to a decline in stock prices and dragging down the STI. Therefore, the market may not be optimistic about the STI's performance after the announcement of OCBC's performance on Friday, February 24.

He also said that with the hawkish tone of the U.S. Federal Reserve's interest rate hikes and the fading optimism of China's reopening, the index is expected to continue to decline in the short term, and the next support level for the STI is at 3,200 points.

The performance of stock markets in the Asia-Pacific region varied. Tokyo stock market fell the most by 1.34%, followed by Sydney and Shenzhen stock markets, which fell by 0.39% and 0.12% respectively. Shanghai and Hong Kong stock markets rose by 0.07% and 0.66% respectively, while Seoul and Taiwan stock markets rose by 1% and 1.39% respectively.


uSMART market strategist James Ooi analysis: The theoretical ex-rights price of Keppel Corporation should be around $7 after the company's dividend rights issue.

In terms of Hang Seng Index constituents, 15 stocks fell, 12 rose, and three remained unchanged. The biggest decliners were Keppel Corporation and United Overseas Bank, which fell 25.2% and 4.42% to $5.49 and $29.61, respectively. The sharp drop in Keppel Corporation was mainly due to the impact of the dividend rights issue. Previously, the company distributed 19.1 shares of Sembcorp Marine per share. Starting from Thursday, shareholders who bought and held Keppel Corporation shares after the rights issue would not be entitled to these Sembcorp Marine shares.

James Ooi said that if Keppel Corporation's cash income from Keppel Offshore & Marine is considered, the theoretical ex-rights price of Keppel Corporation should be around $7.

Leading the gains were SATS and Keppel DC REIT, rising 4.78% to $2.85 and 2.06% to $1.98, respectively.

In terms of active stocks, Sembcorp Marine and Yangzijiang Shipbuilding were at the forefront, with trading volumes of 458.4 million shares and 24.94 million shares, respectively. The former's stock price fell sharply by 5.97% to $0.126, and the latter also fell by 1.48% to $1.33.



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