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THE Singapore bourse's five-day rally came to a halt yesterday with investors turning to profit-taking, following the index hitting a 10-month high on Monday.
The benchmark Straits Times Index (STI) swung between gains and losses within a narrow 23-point range before inching down 1.82 points, or 0.07 per cent to 2,454.33.
It did not follow markets in the United States where, overnight, the Dow Jones Industrial Average gained 1.19 per cent, while the broader Standard & Poor's 500 Index rallied to an eight-month high.
In general, Asian markets were mixed yesterday. Tokyo's Nikkei Average was up 2.73 per cent, while Hong Kong's Hang Seng Index closed almost unchanged. The Shanghai Composite Index lost 1.65 per cent and South Korean and Taiwan markets only edged slightly higher.
Trading volume in Singapore saw a healthy 2.1 billion shares worth $1.71 billion changing hands.
Despite the end of the five-day rally, analysts remain optimistic about prospects.
KELive Research expects market sentiment to remain bullish during the corporate earnings season, with earnings continuing to gain positive traction.
The improving market volume also supported the bullish mood, it added.
DBS Vickers expects the STI to rise to 2,560 points before correcting, as traders buy in anticipation of the second quarter earnings season that picks up pace from this week.
'The slew of better-than-expected earnings from US corporates last week raises optimism that local companies could perform the same,' it stated in a report.
However, the 2,560 level would represent a 75 per cent surge in the short span of five months and a period of pause 'cannot be ruled out before the next 'up' leg that would lift the index to new highs for the year', it added.
Among the day's value losers were DBS, which lost 22 cents, or 1.78 per cent to $12.14, and United Overseas Bank, which fell 10 cents to $15.50.
CapitaLand fell five cents, or 1.31 per cent to $3.76, after climbing over 14 per cent over the past five days.
Jaya Holdings extended Monday's seven per cent decline after it admitted some of its creditors had demanded repayment. It fell one cent, or 2.63 per cent to 37 cents,
The company, which owes over $300 million in outstanding loans, last month admitted it was finding it difficult getting its lenders to roll over or extend existing credit facilities.
One of yesterday's notable winners was bourse operator SGX, buoyed by the announcement of its new chief executive Magnus Bocker on Monday evening. It extended gains into its sixth day, adding seven cents to $7.75.
K-Reit rose for the third day to its highest close since Sept after posting better than expected results. It surged four cents, or 3.81 per cent to $1.09.
Golden-Agri Resources was the most actively traded stock with 151.92 million shares changing hands. It lost one cent to 36.5 cents after a five-day, 26 per cent gain.
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