STI falls 0.2%, bucking regional gains ahead of busy data week
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Anita Gabriel
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SINGAPORE shares fell on Monday (Apr 10) after a long Easter weekend, as caution led the day ahead of a busy week of economic data, keeping traders mostly on the sidelines.
The key Straits Times Index slipped 6.05 points or 0.2 per cent to 3,294.43. Markets in Australia, Hong Kong and Europe remained closed on Monday for Easter. Key gauges in Japan, Taiwan, Malaysia and South Korea finished higher, while China also bucked the trend to end the day lower.
Last week, US jobs data mostly met expectations, indicating that the labour market has remained tight despite some moderation in job growth. By this measure, pundits expect the Federal Reserve to lean towards another rate hike in May.
“After the non-farm payroll data on Friday failed to allow markets to put inflation concerns completely on the back burner, focus will shift to the March CPI (consumer price index) release on Wednesday this week for further light,” said Saxo’s market strategist Charu Chanana.
“Investors continue to assess whether the Fed can squeeze in one more rate hike in May before pausing to take stock of the financial-sector concerns.”
The Monetary Authority of Singapore is set to announce its monetary policy decision on Friday, with most economists expecting a tightening given stubborn inflation. Singapore’s gross domestic product figures for the first quarter of 2023 will also be released.
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The US will kick off its earnings season later this week, with several big banks issuing their report cards. Inflation concerns could take centre stage with the release of CPI data out of China and India (apart from the US). Traders will also be looking out for minutes of the Federal Open Market Committee’s Mar 22 meeting.
Turnover on the local bourse stood at one billion units worth S$649.8 million. Gainers trounced losers with 210 counters up and 153 down.
Singtel inched up S$0.01 or 0.4 per cent to S$2.51. RHB Research has maintained its “buy” call on the stock, with a target price of S$3.30. The house said the integration of Singtel’s Indonesian associate with its parent’s fixed broadband business, IndiHome, will expand its addressable market and drive customer stickiness with potential for greater average revenue per user uplift. RHB also forecasts Singtel to pay a dividend per share at the top-end of guidance for FY2023.
Medtechs International Corp was the day’s second-most actively traded counter, with 83 million shares changing hands. It surged S$0.038 or 23.9 per cent to S$0.197. Last month, shares of the Catalist-listed protective gear manufacturer were heavily traded, prompting a trading activity query from the Singapore Exchange. The trading day also saw many other healthcare stocks draw galvanised trading activity.
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