Singapore stocks buck regional decline amid cautious sentiment; STI up 0.1%

THE Straits Times Index (STI) edged up 0.1 per cent or 4.47 points to 3,218.93 on Wednesday (Sep 13).

The advance came despite major regional markets ending the day in the red.

Across the broader market, losers beat gainers 308 to 246, after 1.3 billion securities worth S$782.7 million changed hands.

Japan’s Nikkei 225 shed 0.2 per cent, while Hong Kong’s Hang Seng Index and South Korea’s Kospi fell 0.1 per cent.

SPI Asset Management managing partner Stephen Innes said global market sentiment may have taken a hit as oil prices rose, which could exacerbate inflation in countries such as the US.

On Tuesday, oil prices rose 2 per cent to a near 10-month high as supplies are expected to remain tight and the Organization of the Petroleum Exporting Countries continued to forecast strong growth in global oil demand in 2023 and 2024.

BT in your inbox

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign Up

Sign Up

While Innes does not expect the current surge in oil prices to influence the Federal Reserve’s decision on interest rates at its September meeting, oil prices staying higher than US$90 per barrel would justify a further rate hike in either November or December.

“Persistently elevated energy prices have the potential to trigger a substantial uptick in headline inflation, which may compel the Federal Reserve to adopt a more assertive approach than what investors are currently prepared for,” he said.

“This scenario underscores the delicate balance between energy costs, inflationary pressures, and the central bank’s monetary policy actions, which can have profound implications for the broader economic landscape.”

SEE ALSO

Saudi, Russian oil cuts to cause big supply shortfall: IEA

Oil jumps 2% to near 10-month high as Opec predicts tight supplies

On the STI, the top performer was UOB , which rose 1.2 per cent or S$0.33 to S$28.63.

The other local banks also ended the day in the black. DBS rose 0.8 per cent or S$0.28 to S$33.54, while OCBC climbed 0.5 per cent or S$0.06 to S$12.58.

Yangzijiang Shipbuilding came in at the bottom of the table, shedding 1.7 per cent or S$0.03 to S$1.69.