Singapore shares rise ahead of Federal Reserve meeting; STI up 0.4%

SINGAPORE shares closed higher on Tuesday (Dec 12), as markets worldwide prepared for the United States Federal Reserve’s final meeting of the year.

The benchmark Straits Times Index rose 0.4 per cent, or 12.11 points, to 3,102.31.

Across the broader market, gainers outnumbered losers 332 to 200, as 1.2 billion shares worth S$862.4 million changed hands.

On the local bourse’s blue-chip barometer, Sembcorp Industries was the top gainer, rising 3.3 per cent, or S$0.16, to S$5.07.

The industrial and urban solutions company on Dec 6, through a wholly owned subsidiary, completed its acquisition of Qinzhou Yuanneng Wind Power in China, increasing its renewables portfolio of solar, wind and energy storage globally to 12.6 GW.

Integrated resorts developer Genting Singapore was up 1 per cent, or S$0.01, at S$0.985. The company was most recently in the news on Dec 8 after its Resorts World casino was fined S$2.25 million for due diligence lapses.

Agribusiness group Wilmar International once again led declines on the index in percentage terms. It ended Tuesday down 1.4 per cent, or S$0.05, at S$3.46.

Local banking stocks mostly climbed on Tuesday. DBS was up 0.6 per cent, or S$0.18, at S$31.57, while UOB rose 0.9 per cent, or S$0.24, to S$27.68. OCBC was the only decliner of the three, shedding 0.3 per cent, or S$0.04, to S$12.50.

Regional markets were up, tracking a Wall Street rally overnight. Hong Kong’s Hang Seng Index gained 1.1 per cent.

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Japan’s Nikkei 225 ticked up 0.2 per cent, while South Korea’s Kospi Composite Index gained 0.4 per cent. Australia’s S&P/ASX 200 rose 0.5 per cent. The Bursa Malaysia Kuala Lumpur Composite Index edged up 0.1 per cent.

Yeap Jun Rong, market analyst at IG, noted that all attention will be on the United States consumer price index data release later on Tuesday, which could potentially set the tone for US policymakers at their upcoming meeting.

“The November Federal Reserve minutes showed that US policymakers were still concerned that inflation could be stubborn, leaving the door open for additional tightening if needed,” he said.

“Therefore, further inflation progress will be watched to validate the effectiveness of current restrictive policies in place and give more room for the Fed to consider rate cuts in 2024 if economic conditions worsen.”