Singapore stocks end 0.4% lower amid concerns over more tightening by the Fed

WORRIES over more aggressive monetary policy tightening by the United States Federal Reserve sent Asian markets – including Singapore’s – falling on Wednesday (Sep 7).

The benchmark Straits Times Index (STI) fell 0.4 per cent, or 13.35 points, to 3,210.83. Losers outnumbered gainers 195 to 297, as some 1.5 billion shares worth S$1.2 billion changed hands.

Elsewhere in the region, major indices also fell. South Korea’s Kospi fell 1.4 per cent, while Japan’s Nikkei closed 0.7 per cent lower. 

Yeap Jun Rong, market strategist at IG, said that the STI has been attempting to hang above the 3,200 level, which also marks its 50-day moving average ahead. 

Latest fund flow data from bourse operator Singapore Exchange (SGX) showed a net outflow of S$63 million from institutional investors last week, coming after 4 consecutive weeks of net inflows amounting to S$762 million. 

“The near-term lower highs and lower lows provided an overall downward bias, and should the 3,200 support level fail to hold, it may unlock room for further downside to the 3,145 level next,” said Yeap. 

Among STI constituents, DFI Retail Group was the top decliner for the day, falling 3.4 per cent, or US$0.09 to US$2.59.

Jardine C&C was the second-highest decliner, extending its swings for the third consecutive day. It fell 3.1 per cent or S$1.08 to S$33.35 on Wednesday. 

Its share price had risen 6.3 per cent on Tuesday, after having fallen 2.7 per cent on Monday.

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Of the 3 local banks, which have a heavy weightage on the index, 2 closed in the red: DBS fell 0.8 per cent, or S$0.26 to S$32.28, and UOB declined by 0.8 per cent, or S$0.21 to S$26.89. 

OCBC ended higher, rising 0.2 per cent, or S$0.02 to S$12.04.