[SINGAPORE] Stocks on the local bourse closed lower on Thursday (Apr 16), despite a positive regional performance and growing optimism that the US and Iran will extend their ceasefire to continue negotiations.

The benchmark Straits Times Index (STI) lost 0.3 per cent or 13.37 points to finish at 5,007.83.

Mapletree Logistics Trust led the gainers on the blue-chip barometer, rising 1.6 per cent or S$0.02 to end at S$1.26.

The STI’s biggest decliner was Singtel , which fell 1.8 per cent or S$0.09 to close at S$4.83.

The three local banks ended lower. DBS lost 0.7 per cent or S$0.40 to S$57.30, OCBC fell 1 per cent or S$0.22 to S$22.66, and UOB was down 0.2 per cent or S$0.07 at S$37.52.

Across the broader market, gainers outnumbered losers 397 to 219, after 2.1 billion securities worth S$2.3 billion changed hands.

Key regional indices closed higher. Hong Kong’s Hang Seng Index gained 1.7 per cent, Japan’s Nikkei 225 rose 2.4 per cent, South Korea’s Kospi was up 2.2 per cent, and the FTSE Bursa Malaysia KLCI advanced 0.4 per cent.

The region’s broadly positive showing on Thursday came amid rising hopes for an imminent resolution to the conflict in the Middle East, even as the US and Iran position for control over the Strait of Hormuz.

Jose Torres, senior economist at Interactive Brokers, pointed out that the US stock market’s record-breaking rally has continued, driven by renewed hopes for peace in the Middle East.

This has propelled tech stocks to their 11th consecutive day of gains, he noted. The S&P 500 and Nasdaq, meanwhile, rose to record closing highs.

“Despite speculative enthusiasm thriving in the past several weeks, much of the same concerns from then remain front and centre today,” said Torres. “But the fear of missing out brought investors into the market as soon as any semblance of potential Middle East peace appeared.”