Singapore stocks retreat amid uncertainty over rate-cut outlook; STI down 0.5%
Tay Peck Gek
SINGAPORE shares pulled back on Tuesday (Jan 16) in tandem with most key regional bourses, taking the cue from European markets’ declines and lower US stock futures.
Wall Street was closed for a public holiday on Monday.
Investors are wondering if they have been overly enthusiastic about central banks’ early rate cuts, as officials have been pushing back against such bets.
While inflation is falling, there are fears that tensions in the Middle East could escalate, and that the rising freight rates stemming from diversions from the Red Sea might push prices of consumer goods higher.
The Straits Times Index (STI) on Tuesday lost 0.5 per cent or 14.43 points to 3,184.99, with only six out of the 30-stock blue-chip gauge closing higher. Fifteen index counters ended lower, while nine were unchanged.
Across the broader market, decliners beat gainers 330 to 224, with some 1.1 billion securities worth S$795.3 million changing hands.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
The trio of local banks all closed lower. DBS fell 1 per cent to S$32.34, UOB slipped 0.7 per cent to S$28.20, and OCBC lost 0.5 per cent to end at S$12.87.
Shares of China-based electric vehicle maker Nio closed within a whisker of their 52-week low at US$7.06 after dropping 1.5 per cent.
Samudera Shipping , another transportation stock, has been on an upward trajectory since the Red Sea crisis heightened in December, rising 5.5 per cent to S$0.765. Carriers’ shares have benefited from diversions from the Red Sea, amid rebel attacks that have sent freight rates soaring.
Key indices around the region also ended Tuesday lower. Japan’s Nikkei 225 slid 0.8 per cent, Hong Kong’s Hang Seng Index was down 2.2 per cent, and South Korea’s Kospi dropped 1.1 per cent.
Copyright SPH Media. All rights reserved.
