Singapore market slides after Fed’s hawkish hold; STI dips 1.2%
Tay Peck Gek
THE Federal Reserve’s hawkish stance tamed markets in the Asia-Pacific on Thursday (Sep 21), with key bourses from South Korea to Australia swimming in a sea of red hours after the United States central bank’s policy rate decision.
Singapore’s benchmark, the Straits Times Index (STI), was not spared the rout as it dipped 1.2 per cent or 39.19 points to 3,202.81 points. Only four stocks of the 30-constituent blue-chip gauge closed higher.
The Fed left its policy rate range unchanged on Thursday at 5.25 per cent to 5.50 per cent, the highest in 22 years.
Phillip Securities Research analyst Shawn Sng noted that the signalling by the US central bank of an incoming additional hike at the end of this year along with the possibility that further rate increases have not been taken off the table have caused a dampening in market sentiments as rates will stay elevated.
Yangzijiang Shipbuilding was one STI stock that managed to rise – by 4.2 per cent to S$1.74, with CGS-CIMB expecting the China-based vessel maker to benefit from higher ship prices and declining steel prices.
Most real estate investment trusts (Reits) closed in the red, led by Manulife US Reit ’s 6.4 per cent decrease. The office Reit closed at US$0.044, sinking to a 52-week low. Its unit price had plunged 90 per cent since late 2022.
The banking trio declined, with OCBC sliding 1.7 per cent to S$12.48, DBS down 1.4 per cent to S$33.22 and UOB dipping 0.9 per cent to S$28.26.
Across the broader market, decliners beat gainers 362 to 195, as 1.3 billion securities with a total value of S$941.2 million were transacted.
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