Singapore stocks off session’s lows despite core inflation surprise; STI down 0.5%

THE Singapore market closed with a smaller dent on Tuesday (Aug 23) despite an upside surprise to the country’s inflation figures. Core inflation rose at a faster-than-expected pace to hit a new high of 4.8 per cent in July, latest consumer price index (CPI) figures showed.

After the data’s release at 1 pm, the Straits Times Index (STI) deepened the day’s losses to hit a 5-day low of 3,224.98 at around 2.25 pm. 

But the market took a sharp turn afterwards and recouped much of the losses, ending 0.5 per cent or 16.36 points lower at 3,246.21.

The decline tracked regional losses amid continued de-risking on Wall Street ahead of the Jackson Hole Symposium, which starts Thursday. Major indices in Hong Kong, South Korea, Australia and Japan ended 0.8 to 1.2 per cent lower.

In a note sent shortly before market close, UOB’s global economics and market research team said that while the surge in core inflation was a surprise, its sources of price pressures for July were not unexpected.

The team also noted that the Monetary Authority of Singapore removed its previous expectation for core inflation to peak in the third quarter. “This likely means that core inflation may stay elevated for longer,” it said.

Among STI constituents, the biggest losers of the day were Hongkong Land, which slid 2 per cent to US$4.90, and Mapletree Industrial Trust, which fell 1.9 per cent to S$2.63. 

OCBC extended Monday’s losses and closed 0.7 per cent lower, while the other 2 local banks added to the previous day’s gains. UOB rose 0.7 per cent, while DBS ended 0.03 per cent higher.

Sembcorp Industries gained the most, climbing 1.9 per cent or S$0.06 to S$3.30.

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In the broader market, losers outnumbered gainers 257 to 222, with 1.57 billion securities worth S$1.34 billion changing hands. 

Sembcorp Marine was the most actively traded counter by volume. The counter closed up 3.6 per cent at S$0.115, after 234.8 million shares worth S$26.5 million were traded.