Singapore stocks slip alongside other Asian markets ahead of Fed rate decision; STI down 0.6%

SINGAPORE stocks fell on Wednesday (May 3), mirroring regional markets and tracking overnight losses in the US as investors remained cautious ahead of the US Federal Reserve’s interest rate decision.

The benchmark Straits Times Index (STI) fell 0.6 per cent or 19.98 points to close at 3,262.01.

Across the broader market, losers outnumbered gainers 321 to 257 after 1.4 billion securities worth S$1.1 billion were traded.

Genting Singapore led losers on the STI, with the counter falling 3.6 per cent to close at S$1.08. The counter, which was trading ex-dividend, also saw active trading, with some 40 million shares worth S$43 million changing hands.

The local banks were also among the losers, with UOB falling 0.7 per cent and OCBC slipping 0.2 per cent. DBS shares slid 2.3 per cent to close at S$32.21 after analysts cut their target prices for the stock amid expectations of net interest margins moderating.

Meanwhile Sembcorp Industries shares surged 5.5 per cent to close at S$4.57, ending the day as the top STI performer.

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Elsewhere, key indices in Australia, South Korea and Hong Kong fell between 0.9 and 1.2 per cent following overnight losses on Wall Street. Markets in Japan and China were closed on Wednesday for holidays.

“Risk sentiments are back to cautious mood this week,” said IG market analyst Yeap Jun Rong, noting it came amid lingering fears over the stability of US regional banks, as well as investors looking towards the Fed’s interest rate decision on Wednesday.

“A 25 basis-point rate hike has been fully priced, so focus will be on how Fed chair Jerome Powell balances between keeping the Fed’s tightening option open and calming nerves around the renewed banking jitters,” he added.