Asian stocks mixed amid uncertainties

Asian stocks traded mixed yesterday after early gains fizzled as investors grappled with the ongoing US-China trade rhetoric, and geopolitical strains. Many are still trying to gauge the direction of the US economy, as the earnings season kicks in, market observers say.

On the local bourse, the benchmark Straits Times Index (STI) fell 0.4 per cent to close at 3,034.31. The field was roughly evenly matched, with advancers edging out losers just slightly at 185 to 179. About 1.8 billion shares worth $950.6 million changed hands, versus a turnover of 1.67 billion shares worth $1 billion on Monday.

CMC market analyst, Margaret Yang, said: "In Singapore, the STI has followed US into a technical correction last week, and this picture is unlikely to change until US market stabilises and earnings season feed investors with positive surprises. Before that, the STI is likely to consolidate within the narrow band of 3,000 to 3,100 points."

The Singapore Exchange (SGX) noted that Singapore Press Holdings on Monday kickstarted the earnings reporting season for STI constituents, for the year ended Aug 31.

Keppel Corp is set to follow suit with its Q3 earnings due tomorrow, while SGX will announce results for its fiscal first-quarter on Friday.

Year-to-date, the STI has generated a total return of -7 per cent, SGX said.

For the day, penny stocks such as Allied Tech, Rex International and Nico Steel were among the most heavily traded.

Other active index stocks included Genting Singapore, which lost 1.6 per cent to 93 Singapore cents with 49 million shares traded, and YZJ Shipbuilding which gained 1.6 per cent to $1.26, with 23 million shares traded.

Asian Healthcare Specialists (AHS) jumped 6.1 per cent to close at 26 Singapore cents apiece, after reaching an intraday high of 28 Singapore cents in the morning trade.

This comes after the Catalist-listed orthopaedic services provider on Monday said it has entered into an investment agreement with Vanda 1 Investments, which is managed and controlled by Temasek Holdings unit, Heliconia Capital Management. Estimated net proceeds for the deal stand at about $9.92 million.

Earlier in June, NRA Capital analyst Liu Jinshu pointed out in a research note that AHS is a "highly profitable business with aggressive growth plans".

The brokerage has valued the stock in the range of 33 to 38 Singapore cents per share, based on the expectation of at least one completed acquisition at the start of FY19, and organic revenue growth of 5 per cent in the second half this year over H1 2018, and in FY19.

Dragging the STI lower however, were Hutchison Port Holdings Trust, which fell 2 per cent to US$0.24, as well as Jardine Strategic Holdings which lost 2.9 per cent to close at US$32.86. The latter is near its 52-week low of US$32.51.

Meanwhile, banking stocks closed mixed once again. UOB gained 0.6 per cent to $25.33, DBS lost one per cent to $24.24, and OCBC fell 0.8 per cent to $10.58.

In Asia, Japan's equities outperformed, while South Korea's Kospi closed flat. The Topix gained 0.74 per cent to finish the day at 1,687.91, after shares in Softbank bounced by 3.6 per cent following Monday's fall.

However, early gains in China and Hong Kong stocks were pared by the end of the day, after data showed that factory-gate inflation had cooled for a third straight month in September, on the back of lean domestic demand. The Shanghai Composite lost 0.85 per cent, while the Hang Seng closed up 0.07 per cent. Meanwhile, Australia shares ended higher as mining and financials rebounded.

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