Singapore stocks tumble amid regional rout as rate-cut hopes fade; STI down 1.3%

SINGAPORE shares were not spared the rout on Wednesday (Jan 17) as key regional bourses swam in a sea of red.

This came as investors realised that early interest rate cuts might not materialise, with central bank officials pushing back on such bets.

The Straits Times Index (STI) ended 42.77 points or 1.3 per cent lower at 3,142.22, with 27 out of the 30 component stocks closing in the red. The only counter that ended higher was Singapore Exchange , which was up S$0.01 or 0.1 per cent to S$9.64.

Share prices of offshore and marine player Seatrium and alcohol maker Emperador were unchanged at S$0.113 and S$0.51, respectively.

Across the broader market, decliners beat gainers 413 to 173, with some 1.2 billion securities with a total value of S$1.2 billion changing hands.

The Hang Seng Index led regional losses with a decline of 3.7 per cent. South Korea’s Kospi Index was down 2.5 per cent, and the Shanghai Composite Index lost 2.1 per cent.

These losses came as European Central Bank and Federal Reserve officials tempered rate-cut expectations.

Stephen Innes, managing partner at SPI Asset Management, noted that the tone set by Fed governor Christopher Waller on Tuesday has caused a shift in bond markets, indicating that there may not be a swift rate-cutting trajectory as expected. 

Shares of in-flight caterer and ground handler Sats were S$0.02 or 0.7 per cent lower at S$2.87 on Wednesday. Earlier in the day, it announced that it had issued US$500 million worth of senior unsecured notes due 2029 at 4.828 per cent. The company said the proceeds will be used to refinance part of the group’s one billion euro (S$1.5 billion) bridge loans, saving S$8.8 million in interest expenses.

SEE ALSO

Singapore stocks fall at Wednesday’s open on key exports data; STI down 0.4%

Europe: Shares slip as interest rate-cut enthusiasm abates

US: Stocks dip as Treasury yields push higher

Shares of 17Live Group have been on a downward trajectory since the company’s business combination with Vertex Technology Acquisition Corp. The livestreaming platform’s counter closed S$0.12 or 9.2 per cent lower at S$1.18 on Wednesday.

It has tumbled from its first trading day post-combination closing price of S$3.15 on Dec 8, 2023, erasing about 62.5 per cent in market value during this period.