STI declines 0.2 per cent, bucking Asia rally

SINGAPORE shares declined as regional indices climbed on Tuesday (Mar 22).

The Straits Times Index (STI) ended Tuesday down 0.2 per cent or 5.34 points at 3,350.17. Across the broader market, 1.56 billion securities worth S$1.35 billion were traded as advancers beat decliners 264 to 180.

Elsewhere in Asia, Hong Kong's Hang Seng Index closed up 3.2 per cent, Japan's Nikkei 225 closed up 1.5 per cent, South Korea's Kospi closed up 0.9 per cent and the Jakarta Composite index closed up 0.7 per cent. The Kuala Lumpur Composite Index bucked the regional trend to close down 0.1 per cent.

In a report released on Mar 21, Singapore Exchange market strategist Geoff Howie noted that a more hawkish outlook for US interest rates could have supported recent gains in local bank stocks. DBS, UOB and OCBC rose 6.4 per cent, 19.2 per cent and 5.5 per cent year-to-date as at Mar 18.

He also noted that the CME FedWatch Tool, which analyses the probability of the Federal Open Market Committee rate moves for upcoming meetings, saw expectations for a target band of 200-225 basis point rise from 17 per cent to 42 per cent after more hawkish comments from the Fed.

The trio of banks closed in the red on Tuesday. DBS D05 fell 0.5 per cent or S$0.16 to close at S$35.04; UOB U11 declined 0.2 per cent or S$0.07 to close at S$32.13 while OCBC O39 closed down 0.3 per cent or S$0.03 at S$12.13.

Jardine Cycle & Carriage C07 topped the STI stocks on Tuesday, climbing 1.2 per cent or S$0.27 to close at S$23.77.

Jardine Matheson Holdings J36 was at the bottom of the table, closing down 1.4 per cent or US$0.76 to close at US$54.65.