STI up 0.7%; Asian markets mixed ahead of Fed meeting outcome

SINGAPORE stocks clawed back some losses from the early part of the week on Wednesday (Jan 26), with the Straits Times Index (STI) up 0.73 per cent or 23.81 points to end at 3,271.57.

Gainers beat losers 263 to 190, with 1.21 billion securities worth S$1.08 billion changing hands.

Agribusiness group Wilmar International F34 was the top gainer among the index's constituents, adding 2.4 per cent or S$0.10 to close at S$4.27.

At the bottom of the table is CapitaLand Integrated Commercial Trust C38U , which shed 1 per cent or S$0.02 to end at S$1.98. The counter had been on a decline since the real estate investment trust's manager announced late on Monday that it is divesting leisure and edutainment mall JCube for a consideration of S$340 million.

The trio of local banks saw gains, with OCBC O39 climbing 1.65 per cent or S$0.20 to S$12.35, UOB U11 up 0.98 per cent or S$0.29 to S$30.02 and DBS D05 up 0.31 per cent or S$0.11 to S$35.31.

Asian equities closed mixed.

Japan's Nikkei index ended down 0.44 per cent, dragged by technology heavyweights as their peers in the US slumped overnight on fears over the Federal Reserve's imminent rate hike and escalating US-Russia tensions centred on Ukraine. South Korea's benchmark Kospi fell for the fourth straight session, shedding 0.41 per cent.

Hong Kong's Hang Seng Index finished 0.19 per cent higher while the Shanghai Composite Index edged up 0.66 per cent.

Closer to home, the Kuala Lumpur Composite Index was up 0.45 per cent while the Jakarta Composite Index climbed 0.5 per cent.

IG market strategist Yeap Jun Rong said that some market participants may be staying on the sidelines and refraining from taking on more risks ahead of the Fed meeting on Wednesday.

"Guidance from the Fed regarding the path towards tightening will be key in driving market performance (in the) near term. Barring any steps towards the more hawkish end, markets may potentially see a relief rally ahead," he said.