Reits lead Singapore stocks lower on Friday, as STI falls for 7th day

LOCAL stocks continued their losing streak on Friday (Oct 14), even as most Asian markets rallied, following robust overnight gains on Wall Street.

The benchmark Straits Times Index (STI) fell for the seventh straight day, dipping 0.03 per cent or 0.84 points to 3,039.61, hitting a fresh 19-month low. For the week, the market barometer was down 3.4 per cent or 106.20 points.

Economic data on Friday showed that Singapore’s economy beat expectations and grew 4.4 per cent year on year in the third quarter – higher than expectations for 3.5 per cent growth in a Bloomberg poll.

Meanwhile, the Monetary Authority of Singapore also tightened monetary policy to fight inflation, but it was less aggressive than the “double-barrelled” move expected by some economists.

While Singapore stocks opened stronger, the market turned negative at the close of trading, with real estate investment trusts (Reits) among the biggest losers.

Frasers Logistics & Commercial Trust and Mapletree Pan-Asia Commercial Trust were the top STI decliners, falling 5.1 per cent and 3 per cent respectively. Capitaland Ascendas Reit was the only STI Reit to end the day higher, climbing 0.4 per cent to S$2.61.

Yangzijiang Shipbuilding was the top STI gainer for the day, with its shares rising 1.7 per cent to S$1.17.

Across the broader market, decliners outnumbered gainers 255 to 251, with 1.4 billion securities worth S$1.2 billion traded.

Elsewhere in the region, markets took their cue from Wall Street; key indices in Hong Kong, South Korea, Australia and Japan rallied between 1.2 and 3.3 per cent.

SEE ALSO

Singapore GDP beats expectations to grow 4.4% in Q3: flash estimates

MAS recentres mid-point of policy band again in bid to reduce imported inflation

US consumer prices up more than expected in September; weekly jobless claims rise

US Consumer Price Index (CPI) data released on Thursday showed that inflation came in hotter than anticipated, but Wall Street quickly rebounded from early losses, with the S&P 500 index climbing 2.6 per cent on Thursday.

SPI Asset Management managing partner Stephen Innes said: “It does not appear that the market has checked off all the fundamental pre-conditions for a market bottom, with the hot US CPI report topping that list of macro worries, leading most macro players to concede that technicals and positioning (likely) ruled the day.”