Singapore shares end flat as focus switches to Fed meeting next week

THE blue-chip barometer Straits Times Index (STI) managed to eke out an increase of 0.03 per cent or 1.1 points to 3,190.11 points on Tuesday (Jun 6), amid a mixed regional market showing. This came after all three key indices on Wall Street slid overnight as investors took profit after Congress agreed to suspend the United States debt default. 

A newsletter by private bank LGT published on Tuesday noted that markets have put behind the debt ceiling deal, with investors now looking to the Federal Reserve’s rate decision next week. The US central bank’s meeting will have a summary of economic projections.

Qontigo’s head of applied research for the Asia-Pacific, Olivier d’Assier, said that investors remain unconvinced that the US economy is out of the recession woods.

Digital Core Reit, which focuses on data centres, closed 4.9 per cent higher at US$0.43, despite the fact that its distribution per unit could fall by US$0.02, assuming the elimination of annual revenue from its second-largest tenant, which has filed for bankruptcy protection. The higher price came after two brokerages lowered their target prices for the real estate investment trust (Reit), but recommended “buy” calls on the counter.

The unit price of IReit Global meanwhile slipped 2.1 per cent to a 52-week low at S$0.46, days after the Europe-focused Reit unveiled its plan to acquire a portfolio of 17 retail properties in France for about 76.8 million euros (S$112.2 million).

Across the broader market, gainers trailed decliners 265 to 271, on a turnover of about 1.5 billion securities worth S$1.1 billion in transaction value.