Singapore stocks end higher as Fed rate hike fears recede; STI up 0.8%

LOCAL shares ended Wednesday (Oct 26) on a more upbeat note, as traders took advantage of market hopes that the Federal Reserve could start adopting a less aggressive monetary tightening stance.

The Straits Times Index (STI) advanced 0.8 per cent or 24.23 points to close at 3,008.38. Across the broader market, winners outpaced losers 309 to 191, after about 1.4 billion securities worth a total of S$1.1 billion changed hands. 

SGX market strategist Geoff Howie said real estate investment trusts (Reits) on Wednesday booked their strongest session since May 2020. The FTSE ST Reit Index was up 3.5 per cent for the day, he noted. 

Reasons for the strong showing, he said, are earnings expectations and less hawkish predictions for interest rates in the US at year-end. “Majority expectations (are) now seeing a 50 basis point hike on Dec 14, rather than a 75 basis point hike as expectations suggested last week,” he said. 

Jardine Matheson Holdings was the biggest advancer on Wednesday, gaining 2.5 per cent or US$1.13 to close at US$46.20. iFast Corporation , which is set to announce its Q3 results after market close, was also among the top gainers. The counter finished the day at S$3.82, up 4.7 per cent or S$0.17. 

Jardine Cycle & Carriage was the biggest loser, shedding 2.3 per cent or S$0.72 to S$30.49. Two of the three lenders also closed lower – DBS lost 0.4 per cent or S$0.13 to S$32.63, while UOB fell 0.2 per cent or S$0.05 to S$26.08. OCBC, meanwhile, eked out a 0.3 per cent or S$0.04 gain to S$11.74. 

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Sembcorp Marine was the most heavily traded stock for the day, with about 50.7 million shares changing hands. The counter closed at S$0.12, up 0.8 per cent or S$0.001. 

Other actively traded counters were Yangzijiang Shipbuilding, Marco Polo Marine and Singtel .