Singapore stocks snap 6-day winning streak; STI down 0.1%

SINGAPORE shares took a breather from a six-day winning streak to finish lower on Wednesday (Aug 30), bucking regional gains and snubbing Wall Street’s upbeat overnight showing.

The Straits Times Index (STI) retreated 2.87 points or 0.1 per cent to finish the day at 3,220.22.

Key indices across much of the region from Japan, China, Taiwan and South Korea to Australia all finished higher, while Hong Kong and Malaysia ended slightly lower. Sentiment was partly buoyed by weak economic data out of the US, which raised hopes that the Federal Reserve may be done with rate hikes.

Latest data on US job openings and consumer confidence missed the mark, raising the possibility of a Fed pause in September. However, the softer prints could also reignite worries about a potential US recession.

There are even more critical data points ahead from the world’s largest economy, such as GDP, core PCE (personal consumption expenditures) index and non-farm payrolls. This could mean ample opportunity for another repricing of interest rate expectations should any of these key data points surprise to the upside, said Tim Waterer, chief market analyst at KCM Trade.

Investors are also continuing to closely monitor the situation in China, both in terms of stimulus attempts and the latest macro indicators. Beijing is set to release its purchasing managers’ index on Thursday; markets will be paying close attention to the numbers for an indication of just how shaky the Chinese economy is.

On the home front, some 1.4 billion securities worth S$964.8 million changed hands on Wednesday. Gainers trounced losers, with 291 counters up and 254, down. Losses were led by the banking trio DBS, UOB and OCBC.

Frasers Centrepoint Trust inched up S$0.02 or 0.9 per cent to S$2.23. The manager on Wednesday said the real estate investment trust will divest retail mall Changi City Point for S$338 million to an unrelated third party. The proceeds will be used to pare debts.

Singtel closed unchanged at S$2.36. The counter was the day’s third most active with 26 million shares done.

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Singapore shares rise at Wednesday’s open; STI up 0.4%

In an update at its recent 2023 Investor Day, the telco reiterated its commitment to improve return on invested capital to low double-digits by FY26 by, among other things, reducing capital intensity and unlocking value from asset recycling. It also wants to ramp up its new growth engines.

RHB Research said it sees “scope for more cash to be returned” with another S$6 billion in assets earmarked to be recycled over the midterm. In a note on Wednesday, the house suggested that investors accumulate the stock on price dips. It is maintaining a “buy” rating on the counter with a target price of S$3.40.