Singapore shares up 0.6% ahead of Fed’s policy decision
Tay Peck Gek
SINGAPORE shares edged up on Wednesday (Jul 26) ahead of an expected interest-rate hike by the United States Federal Reserve, which will be released in the early hours of Thursday (Singapore time).
The Straits Times Index rose 18.8 points or 0.6 per cent to 3,304.96 points.
A note from DBS Economics & Strategy pointed out that the policy decisions of the Fed and the European Central Bank (scheduled for release on Thursday) this week are “widely expected and fully priced to hike by 25 basis points”.
“Both central banks are expected to reiterate that the decision on forward rate hikes would be data-dependent. Though the scope for surprise on the rate decision appears to be limited, markets would be looking for signals that the two central banks have (got) closer to calling an end to their respective hike cycles,” the note said.
With corporate earnings reporting season under way in Singapore, share prices of companies which have released their latest financial performance are reflecting investor sentiments.
A unit of Singapore Airlines providing aviation maintenance, repair and overhaul services, SIA Engineering ended Wednesday with its share price 1.2 per cent higher, at S$2.45. This was a day after it posted its first quarterly operating profit since the pandemic hit in 2020 for the period that ended in June.
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The unit price of Mapletree Logistics Trust (MLT) was up 0.6 per cent to S$1.72, after the trust – which has a logistics portfolio across Asia – reported a 0.1 per cent improvement in its distribution per unit to S$0.02271 for the quarter to June.
While MLT is a key beneficiary of the structural shift towards more robust e-commerce activity, OCBC Investment Research flagged that rising borrowing costs and more challenging conditions in China are likely to weigh on its distributable income in the near term.
The counters that rose stood at 277, slightly fewer than the 281 that declined across the broader market, as 1.3 billion securities worth about S$1.2 billion were transacted.
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