S-Reits lead Singapore stocks higher amid US recession fears; STI up 0.3%

THE Straits Times Index (STI) climbed 0.3 per cent or 8.42 points to close at 3,294.54 points on Thursday (Apr 13), as Singapore-listed real estate investment trusts (S-Reits) led the charge in a market saddled with fears of a potential recession in the US.

Across the wider Singapore market, gainers outnumbered losers 298 to 264, with 1.3 billion securities worth S$851.9 million traded.

IG market analyst Yeap Jun Rong noted that minutes from the US Federal Reserve’s most recent policy meeting in March have shaken risk sentiment.

“The Fed minutes revealed Fed staff projecting a ‘mild recession’ starting later this year due to banking-sector stress, which erodes chatter of a soft-landing scenario,” he said.

On the other hand, he added: “The broader trend of moderating inflation allows the Fed to consider a rate pause with more policy flexibility to balance economic risks.”

Mapletree Pan Asia Commercial Trust (MPACT) was the biggest winner on Singapore’s blue-chip index, adding 1.1 per cent or S$0.02 to finish at S$1.83.

Reit peer CapitaLand Ascendas Reit (Clar) was also among the top STI gainers, closing 1.1 per cent or S$0.03 higher at S$2.87.

At the bottom of the table was ground handler and inflight caterer Sats , which shed 1.8 per cent or S$0.05 to S$2.74.

Thai Beverage was the most actively traded constituent stock. The counter closed down 1.6 per cent or S$0.01 at S$0.635 after 29.8 million shares changed hands.

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Performance of the trio of local lenders was mixed. DBS gained 0.6 per cent or S$0.20 to S$32.52 and OCBC rose 0.5 per cent or S$0.06 to S$12.80, while UOB lost 0.2 per cent or S$0.06 to end at S$29.95.

Most key Asian markets managed to eke out gains on Thursday. Japan’s Nikkei 225 Index, Hong Kong’s Hang Seng Index and South Korea’s Kospi Composite Index rose between 0.2 per cent and 0.4 per cent. Meanwhile, the FTSE Bursa Malaysia KLCI dipped 0.04 per cent.