Shares down dragged by Sembcorp Marine; eyes on Fed meeting

Singapore shares were 0.45% lower by the midday break on Tuesday in line with Asian bourses and as investors remained on the sidelines ahead of the U.S. Federal Reserve’s meeting this week.

The index was also dragged by losses in shares of Sembcorp Marine (SCMN.SI) and Sembcorp Industries (SCIL.SI), which  dipped on their ex-dividend date.

Sembcorp Marine shares were 5% lower at $5.69 by the midday, with 3 million shares traded. Its parent Sembcorp Industries lost 3.1% at $5.35.

 

By the midday break, the Straits Times Index (STI) <.FTSTI> was down 14.32 points at 3,173.40. The total value of shares traded in the morning session was $595 million, down from $761.4 million a year ago.

 

The U.S. Federal Reserve is scheduled for a policy meeting starting later on Tuesday, with many investors wary that it could signal the end of loose monetary policy, traders said.

“Risky assets are testing resistance levels, and the STI has been rejecting the 3,200 level. In the short term, I expect that risky assets are due for a consolidation,” said Phua Ming-weii, a technical analyst at Phillip Securities

 

Phua said he expects the STI to trade in a narrow 3,165-3,187 point band in the afternoon.

 

“The mood has been capricious and with no clear trend, we could continue to see a generally choppy market for the coming weeks,” said Phua.

 

Shares of Southeast Asia’s largest property developer CapitaLand (CATL.SI) were flat at $3.41 at the lunch break, outperforming the benchmark index after it reported its first quarter net profit more than tripled from the year-earlier period.

 

CapitaLand earned $101.5 million net profit in the three months ended March, up from a restated $29.8 million a year ago, helped by higher profits from development projects and portfolio gains.

 

Precision stamping equipment maker Bright World Precision (BWRL.SI) rose as much as 4.9% to a three-week high after UOB Kay Hian initiated coverage of the firm with a buy recommendation, traders said.

 

Bright World shares were traded at $0.635 by the midday with over 6.3 million shares changing hands.