Singapore stocks open lower on Friday; STI down 0.5%

SINGAPORE shares opened lower on Friday, as lender OCBC Bank posted a larger-than-expected fall in Q2 net profit.

The benchmark Straits Times Index (STI) fell 0.5 per cent or 13.10 points to 2,546 as at 9.04am. Gainers outnumbered losers 78 to 59, after 93.2 million securities worth S$85.3 million changed hands.

Among the most active counters by volume was Genting Singapore, which fell 3.5 per cent or 2.5 Singapore cents to 68.5 cents, with 12 million shares traded as at 9.06am. The casino and leisure giant on Thursday logged a S$163.3 million net loss for Q2 FY2020 ended June, its worst quarterly showing since the opening of its Singapore integrated resorts a decade ago.

Other heavily traded securities included Wilmar International, which gained 2.1 per cent or S$0.10 to S$4.89, with 1.8 million shares traded. Wilmar's Chinese unit on Thursday progressed a step further towards its long-awaited initial public offering after receiving confirmation from the listing committee of the Shenzhen Stock Exchange that it meets the listing and disclosure requirements.

Thai Beverage Public Co was trading flat at 62.5 cents, with 1.8 million shares changing hands as at 9.06am.

The trio of local banks put in a mixed showing in early trade. 

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OCBC Bank sank 0.9 per cent or S$0.08 to S$8.72. The lender on Friday posted a 40 per cent fall in Q2 net profit on surging provisions, as the bank joined its peers in bumping up provisions to buffer against bad loans to emerge amid the pandemic-fuelled crisis.

UOB lost 0.7 per cent or S$0.14 to S$19.62, while DBS gained 0.2 per cent or S$0.03 to S$20.43.

Other active index counters include the Singapore Exchange, which gained 1.5 per cent or S$0.13 to S$8.73. Riverstone Holdings gained 5.3 per cent or S$0.24 to S$4.77.

CapitaLand shares lost 1.1 per cent or S$0.03 to S$2.73. The real estate giant on Friday posted an 89 per cent drop in H1 net profit to S$96.6 million due to the impact of Covid-19 measures on its residential, retail and lodging businesses.

In the US, The Nasdaq powered its way to a fresh record on Thursday, shrugging off a stalemate in Washington on the latest emergency spending package.

European equities declined on Thursday as London stocks were sapped after Glencore scrapped its dividend and oil stocks slid, while investors kept a close eye on Washington for progress on US stimulus.

Elsewhere in Asia, Tokyo stocks opened flat on Friday as investors took a wait-and-see attitude ahead of key US jobs data and a long weekend in Japan.