Singapore stocks climb after inflation data delivers no surprises; STI up 0.3%
ST Engineering was the top gainer among the constituents, rising 1.5%
SINGAPORE shares ended higher on Monday (Jun 24) after local inflation data released the same day came in largely in line with expectations.
The benchmark Straits Times Index (STI) rose 0.3 per cent or 8.12 points to 3,314.14. Across the broader market, losers beat gainers 273 to 259, with 1.2 billion securities worth S$826.6 million changing hands.
Regional markets were broadly in the red. South Korea’s Kospi shed 0.7 per cent, the Shanghai Composite Index fell 1.2 per cent, while Hong Kong’s Hang Seng Index closed flat. On the other hand, Japan’s Nikkei 225 rose 0.5 per cent.
HSBC Asean economist Yun Liu said that despite there being no big surprises in Singapore’s consumer price index print, the “last mile” of disinflation has proven to be sticky.
“For one, we need to acknowledge some ‘Singapore exceptionalism’, as the Monetary Authority of Singapore (MAS)-style core inflation includes both food and energy components, which are largely imported and are directly impacted by MAS’ monetary policy,” she said, adding that elevated global food prices and food servicing services have been driving prices higher.
Furthermore, she said that labour market imbalances could have led to continued stickiness in services prices.
On the STI, ST Engineering was the top gainer, closing 1.5 per cent higher at S$4.10.
Seatrium came in at the bottom of the table, falling 2.6 per cent to S$1.48. Three of the four Jardines on the index followed close behind, with DFI Retail Group , Jardine Cycle & Carriage and Hongkong Land dropping 2.1, 1.6 and 1.5 per cent, respectively.
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