Singapore stocks appear unfazed by ECB’s decision; STI once again flat

SINGAPORE shares ended Friday (Jun 7) barely changed, after the European Central Bank (ECB) delivered its first rate cut since 2019.

The benchmark Straits Times Index was unchanged in percentage terms, moving down only 0.04 point to 3,330.77.

Across the broader market, winners beat losers 284 to 258, with 1.3 billion shares worth S$948.2 million traded over the day.

ECB on Thursday shaved three key interest rates, which apply across all 20 countries that use the euro, by a quarter-point to 3.75 per cent.

Mark Wall, chief European economist at Deutsche Bank, said the cut was expected but the statement gave “less guidance than might have been expected on what comes next”.

“This is not a central bank in a rush to ease policy,” he noted.

Markets in South-east Asia were mixed at the news. Hong Kong’s Hang Seng Index slid 0.6 per cent, while Japan’s Nikkei 225 ticked down 0.1 per cent. The Bursa Malaysia Kuala Lumpur Composite Index rose 0.2 per cent.

South Korea’s Kospi Composite Index increased 1.2 per cent after returning from a holiday break.

Back home, the STI’s biggest winner was Jardine Cycle & Carriage , which ascended 3 per cent or S$0.79 to S$27.16. It was closely followed by Yangzijiang Shipbuilding , which gained close to 3 per cent or S$0.07 to S$2.41.

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The biggest loser was property player Hongkong Land , which shed 1.4 per cent or US$0.05 to US$3.42.

Two local banks ended lower. OCBC lost 0.2 per cent or S$0.03 to S$14.27, while UOB fell S$0.01, or almost unchanged in percentage terms, to S$30.76. DBS , meanwhile, added 0.1 per cent or S$0.02 to finish at S$35.52.