Singapore shares end lower on inflation concerns; STI falls 0.2%

SINGAPORE shares ended lower on Wednesday (Mar 1), tracking overnight losses on Wall Street amid rising concerns of persistent inflation.

The Straits Times Index (STI) fell 0.2 per cent or 7.55 points to close at 3,255.08. Gainers outnumbered losers 323 to 236, after 4.5 billion securities worth S$1.4 billion changed hands.

Stephen Innes, managing partner at SPI Asset Management, noted that markets continued to struggle with the prospects of higher-for-longer interest rates.

He said the market has continued to price in a more hawkish US Federal Reserve stance in light of more robust growth and firmer inflation news.

“Overall, the narrative has turned weaker, but it’s unsurprising: Inflation has proved stickier, and it takes time for higher rates and yields to be passed on to average funding costs.”

Regional markets traded mixed on Wednesday. The Nikkei 225 Index rose 0.3 per cent, the Kospi Composite Index gained 0.4 per cent and the Hang Seng Index climbed 4.2 per cent. The FTSE Bursa Malaysia KLCI Index slid 0.3 per cent.

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In Singapore, Sembcorp Marine : S51 0% (Sembmarine) was the top-traded counter by volume on Wednesday. With 2.9 billion shares worth S$348.5 million changing hands, it accounted for more than half the trading volume in the Singapore market.

Sembmarine’s volume surge came after the company announced the close of its combination with Keppel Offshore & Marine (O&M) on Tuesday.

On Wednesday, Sembmarine began trading at an enlarged total share capital, which included roughly 36.8 billion Keppel O&M consideration shares issued directly to Keppel Corporation and its shareholders.

The counter closed at S$0.115, down 9.5 per cent.

On the STI, Yangzijiang Shipbuilding : BS6 0% was the top gainer, rising 2.3 per cent or S$0.03 to close at S$1.32.

Meanwhile, the top loser was Sats : S58 0%, losing 5.3 per cent or S$0.15 to end at S$2.68.

The trio of local banks ended mixed on Wednesday. DBS : D05 0% lost 0.5 per cent or S$0.17 to close at S$34, and OCBC : O39 0% fell 1.1 per cent or S$0.14 to S$12.53. UOB : U11 0% climbed 0.03 per cent or S$0.01 to S$29.93.