STI nudges up 0.05% ahead of key Powell speech

THE Singapore market ticked marginally higher on Friday (Aug 26) as most global indices traded up ahead of US Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Symposium.

Its benchmark Straits Times Index (STI) closed 0.05 per cent or 1.73 points higher at 3,249.53, with the session dampened by surprisingly poor factory production growth results for July. Gainers outnumbered losers 271 to 213 in the broader market, with 1.67 billion shares worth S$906.7 million changing hands.

Major indices in Japan, South Korea and Australia rose between 0.2 and 0.8 per cent; Hong Kong’s Hang Seng Index led the region’s gains, climbing 1 per cent, after Wall Street ended sharply higher on Thursday.

Oanda senior market strategist Edward Moya said Wall Street’s optimism could be a reflection of easing investor worries, given that the latest Fed-speak supports the hawkish narrative around fighting inflation. 

The Fed’s Raphael Bostic issued a reminder that strong economic data could tip the central bank leader to deliver another 75-basis point rate increase, even as the Fed’s Esther George noted they have more room to go with raising rates, he said.

“The Fed is ready to be locked in tightening mode until inflation eases, and the latest inflation (data) pretty much confirms that won’t happen until next year,” Moya added.

SEE ALSO

Singapore shares open higher following solid Wall Street gains; STI up 0.2% 

Tokyo: Markets end higher as tech shares gain

Europe: Equities rise before Powell speech

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Among STI constituents, Keppel Corporation was the session’s biggest winner, jumping 1.8 per cent to reach S$7.21. Also faring well were CapitaLand Integrated Commercial Trust, which climbed 1.5 per cent to S$2.08, and Mapletree Logistics Trust, which rose 1.1 per cent to S$1.78. 

In last place is DFI Retail Group, which fell 1.8 per cent in the session to US$2.75. Trailing behind it were Genting Singapore, which slid 1.3 per cent to S$0.79, and Thai Beverage, which lost 0.8 per cent to end at S$0.645.

The trio of banks closed mixed. OCBC rose 0.3 per cent to S$12.14, but UOB fell 0.2 per cent to S$27.47. DBS also traded lower, by 0.5 per cent, to end at S$32.84.