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STI Falls 0.13% to 5,423.33 as Early Gains Fade, Jardine Matheson Leads Advancers

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The Straits Times Index fell 0.13% to 5,423.33 on Wednesday, ending a two-session winning streak as early gains faded amid cautious regional sentiment following sharp declines in Korean and Japanese markets. Jardine Matheson led advancers after raising earnings guidance, while ST Engineering rose on plans for a new Transparency Centre. UOB was the only local bank to gain, citing strong Vietnam GDP forecasts. Decliners outnumbered advancers 15 to 12.

The Straits Times Index fell 7.17 points, or 0.13%, to close at 5,423.33 on Wednesday, ending a two-session winning streak. The index opened lower, climbed as high as 5,453.59 by mid-morning, then gave back those gains to finish near its intraday low of 5,410.32. Decliners outnumbered advancers 15 to 12 across the 30-member basket, with three names unchanged, consistent with the index's modest retreat.

The pullback came as regional sentiment remained cautious following this week's sharp slide in Korean and Japanese chip-linked shares — South Korea's benchmark had plunged more than 7% at one point and Japan's Nikkei dropped over 1,300 points — a rout that continued to weigh on risk appetite across Asia. Singapore's three local banks, which had risen together for two straight sessions through Tuesday, diverged on Wednesday, with UOB edging higher while DBS and OCBC slipped, while property developers City Developments and UOL extended recent declines.

Session Movers

Jardine Matheson (J36.SG, +2.34%) was the basket's best performer, rising to $57.74 after the group raised its 2026 underlying earnings guidance to US$5.50-US$5.65 per share, up from US$5.33, implying 3%-6% growth over 2025. The company cited strong performance through the first three quarters and said the increase follows its full buyout of Gammon Construction for £250 million, which is expected to be modestly accretive to net profit. Jardine Matheson trades at 0.58 times book, below the industry median of 0.95; consensus rates it Strong Buy with an $83.52 target implying 44.65% upside.

Jardine C&C (C07.SG, -3.25%) was the worst performer, falling to $25.00 and extending a slide running since an October 7 plunge tied to its name-change and asset-sale disclosures. The stock fell further even after the company this week approved a special dividend of US$0.37 per share alongside the name change, with analysts maintaining a fair-value estimate of S$28.23 that implies the shares are roughly 7% undervalued at current levels. Jardine C&C trades at 8 times earnings, among the cheapest in the basket relative to its own history; consensus rates it Sell with a $27.19 target implying 8.74% upside.

ST Engineering (S63.SG, +0.58%) rose to $10.41 after the company announced plans to open a Transparency Centre in Singapore in the first quarter of 2027, offering independent security and cybersecurity assessments for autonomous vehicles, drones, robots and other cyber-physical systems before commercial deployment, aligned with the US NIST framework. The announcement follows the group's opening of a S$170 million aircraft maintenance facility at Changi Creek last week, expected to expand its MRO capacity by 40% and add more than 500 jobs. ST Engineering trades at 56.44 times earnings, the richest multiple in the basket; consensus still rates it Buy with an $11.73 target implying 12.73% upside.

UOB (U11.SG, +0.32%) rose to $41.06, the only one of the three local banks to gain on Wednesday, after raising its forecast for Vietnam's 2026 GDP growth to 9.2%, citing strong industrial and construction activity in the third quarter and projecting roughly 9.7% growth in the fourth. The bank flagged risks from energy prices, potential US tariffs and inflation, even as Southeast Asian bank stocks broadly have been under pressure since early October on valuation concerns. UOB trades at 1.36 times book, above its fair-value range; consensus rates it Hold with a $43.36 target implying 5.60% upside.

One point worth noting

Decliners outnumbered advancers 15 to 12 (with three unchanged) across the 30-name basket, a tally that for once moved in step with the index's 0.13% decline. That marks a reversal from the past two sessions, when a narrower band of gainers — led by Hongkong Land and the banks — pushed the index higher even as decliners led the tally 17-to-10 on Monday and 19-to-8 on Tuesday. Wednesday's alignment suggests the day's retreat was broader-based rather than concentrated in a handful of laggards.

Source: SGX Close Recap The copyright of this article belongs to the original author/organization.

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