STI rises marginally by 0.07%, bucks trend of losses across region

SINGAPORE shares managed to buck the trend of losses in the region to finish higher on Thursday (Sep 1), following a day of see-saw trading, even as caution reigned amid what pundits called the start of a “bear market rally” in Wall Street.

The key Straits Times Index rose 2.41 points or 0.07 per cent to 3,224.08 following overnight dips in US key stock indices, which closed in the red for the fourth consecutive session on aggressive rate-hike fears. Elsewhere, key gauges in Japan, China, Hong Kong, Taiwan, South Korea, Australia and Malaysia finished lower on more hawkish Fed-speak.

The broad losses in the region come ahead of a key US labour market report. Over in Europe, the central bank there could be poised to raise rates by 75 basis points in more than a week from now, after the eurozone’s inflation hit another record high.

Julius Baer’s head of equity strategy research Mathieu Racheter pointed out that equities are entering a seasonally weak period in the near term. He added: “In the past 6 occasions since the 70s, when US inflation peaked above 5 per cent, growth outperformed value over the subsequent 6 months. Against this backdrop, we see the current situation as a good tactical opportunity to pick up select growth names at inexpensive valuation levels.”

Some 1.14 billion units worth S$980.91 million were traded in the local bourse. Losers outpaced gainers with 275 counters down, and 227, up.

ST Engineering said on Thursday that it has clinched a S$1.4 billion contract to provide turnkey rail services for the new Kaohsiung MRT Yellow Line. Shares of the mainboard-listed tech group ended the day at S$3.78, up S$0.05 or 1.34 per cent.

SEE ALSO

Europe: Shares hit 7-week lows as rate hike fears grow

Hong Kong: Stocks end with big losses

S-Reits in good position to stave off challenges from competing Asian Reit markets

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Golden Agri-Resources announced on Wednesday the suspension of its plans to list its India subsidiary on both the Bombay Stock Exchange and National Stock Exchange of India, citing “adverse and uncertain market conditions”. The palm oil giant’s stock retreated S$0.005 or 1.79 per cent to S$0.275.