STI continues upward trend as investors keep eye on corporate earnings  

Expectations growing that Fed could slow down on its rate hike process after November meeting

LOCAL shares advanced further on Thursday (Oct 27) as investors shrugged off fears of inflation and interest rates, but opted to capitalise on market opportunities amid the announcements of Q3 corporate earnings.  

The benchmark Straits Times Index rose 0.2 per cent or 6.86 points to finish the day at 3,015.24. Advancers outpaced decliners 279 to 214, with daily turnover coming in at 1.6 billion securities worth a collective S$1.2 billion. 

IG market strategist Yeap Jun Rong said in a note that expectations that the Fed could slow down on its rate hike process after the November meeting are brewing. 

"A 75 basis-point hike seems like a done deal in the Federal Open Market Committee meeting next week, but any guidance of a subsequent rate slowdown or amplifying concerns about economic conditions will be on watch to drive further upside for the indices," he said.

Indices across the region ended the day mixed. The Nikkei 225 slipped 0.3 per cent and the KLCI fell 0.1 per cent. The Kospi added 1.7 per cent; the Hang Seng Index rose 0.7 per cent and the ASX 200 was up 0.5 per cent. 

Jardine Matheson Holdings was the biggest decliner on Thursday. The counter fell 1 per cent or US$0.48 to US$45.72. Nio was another top decliner, shedding 3.5 per cent or US$0.37 to close at US$10.28. 

Thinly-traded Great Eastern was the top gainer, adding 1.2 per cent or S$0.21 to S$17.87. 

Ahead of their earnings results releases, banks ended Thursday mixed. DBS rose 0.6 per cent or S$0.18 to S$32.81, and OCBC inched up 0.3 per cent or S$0.04 to S$11.78. UOB, meanwhile, fell 0.2 per cent or S$0.06 to S$26.02. 

Sembcorp Marine was the most heavily traded counter for the day, ahead of the announcement of the revision of terms for its deal with Keppel Offshore and Marine. Some 180 million shares were traded over the course of the day, and the counter rose 1.7 per cent or S$0.002 to close at S$0.122. 

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