SINGAPORE - Shares in Singapore closed lower on May 7, bucking a regional rally and overnight gains in the US.

The benchmark Straits Times Index (STI) fell 0.1 per cent or 3.15 points to close at 3,300.04.

Elsewhere in the region, most markets ended higher, as investors appeared to be more positive over the trajectory of interest rates. Key indexes in Australia, Japan, South Korea and Malaysia rose between 0.5 per cent and 2.2 per cent.

“The response of global markets to signs of a weakening US job market was bolstered by the expectation of Federal Reserve rate cuts in the coming months, which has been a significant driver for stock market sentiment,” said Mr Stephen Innes, managing partner at SPI Asset Management.

“The absence of significant fundamental inputs in the coming days might see market bears in hibernation, allowing bulls to run free,” he added.

On the local bourse, Singapore Airlines was the top STI gainer, climbing 2.1 per cent to $6.69. Other top performers for the day include Jardine Matheson Holdings, which rose 0.5 per cent, and Sats, up 0.4 per cent.

Meanwhile, Venture Corp, which was trading ex-dividend, was the top STI decliner, falling 5.8 per cent to close at $13.43.

The local banks ended the day mixed, with UOB and OCBC slipping 1 cent each, but DBS shares finished higher, rising 12 cents to $35.93. DBS was also the most actively traded counter by value, with some 3.5 million shares worth $126.9 million changing hands.

Across the broader market, losers outnumbered gainers 300 to 270, after 989.52 million securities worth $1.02 billion were traded. THE BUSINESS TIMES