Singapore stocks close flat on Tuesday amid mixed regional performance
Tan Nai Lun
SINGAPORE shares ended little changed on Tuesday (Feb 28) as regional markets saw mixed trading.
The Straits Times Index (STI) fell 0.02 per cent or 0.61 point to 3,262.63. Losers outnumbered gainers 279 to 273, after 1.5 billion securities worth S$1.4 billion changed hands.
This came as markets in the US started the week higher ahead of several key data releases. Last Friday, US stocks ended lower due to rising inflation worries.
Stephen Innes, managing partner at SPI Asset Management, noted that investors are debating whether the higher inflation numbers for January in the US were “just another temporary bump in the road” as the economy adjusts to a post-pandemic world.
He said: “Given the extent and speed of the Federal Reserve’s repricing, the market has already priced a fair amount of good growth and higher inflation news.”
Innes expects the market will need more solid data releases to confirm if the Fed policy rate will be higher than before, and for yields to continue rising.
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Regional markets ended mixed on Tuesday. The Hang Seng Index finished 0.8 per cent lower, while the FTSE Bursa Malaysia KLCI Index slipped 0.1 per cent. However, the Nikkei 225 Index gained 0.1 per cent and the Kospi Composite Index was up 0.4 per cent.
The top gainer on the STI was Frasers Logistics and Commercial Trust , which rose 2.4 per cent to close at S$1.27.
Meanwhile, the top loser was Yangzijiang Shipbuilding . The counter lost 1.5 per cent to end at S$1.29.
The trio of local banks closed lower on Tuesday. DBS fell 0.5 per cent to end at S$34.17, OCBC lost 0.2 per cent to S$12.67, while UOB slipped 0.1 per cent to S$29.92.
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