Singapore stocks close higher despite regional losses, STI gains 0.1%

STOCKS in the Singapore market closed on a surprisingly positive note despite widespread losses in key markets in the region on Thursday (Sep 7).

The Straits Times Index (STI) advanced 0.1 per cent or 3.71 points to 3,226.59.

Diversified conglomerate Jardine Matheson was among the top gainers of the day. The counter closed up 0.4 per cent or US$0.21 at US$47.92.

EnGro Corporation and iFast experienced heavy buying on Thursday. EnGro rose 21.8 per cent, or S$0.17, to S$0.95, while iFast inched up 2.5 per cent, or S$0.14, to S$5.82.

In the broader market, losers outnumbered gainers 277 to 265 after one billion shares worth S$754.3 million were traded.

DBS emerged as the most active counter by value, rising 0.03 per cent to S$33.41. OCBC ended up 0.2 per cent higher at S$12.60, while UOB remained unchanged at S$28.60.

Elsewhere, regional bourses finished the day in a sea of red. Hong Kong’s Hang Seng Index led Thursday’s declines after it fell 1.3 per cent, while Shanghai’s SSE Composite Index slipped 1.1 per cent.

Key gauges in South Korea, Australia and Japan also closed the day marginally lower.

This comes after stronger-than-expected US services sector data fuelled concerns that still-sticky inflation would mean that interest rates stay higher for longer.

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The Institute for Supply Management said on Wednesday that its non-manufacturing Purchasing Managers’ Index rose to 54.5 last month, the highest reading since February, and up from 52.7 in July. A reading above 50 indicates growth in the services industry, which accounts for more than two-thirds of the economy.

Stephen Innes, managing partner at SPI Asset Management, said this could prompt “a more cautious and even hawkish recalibration of real interest rates”.

Such a development might exert additional pressure on riskier assets because risk premiums are already hovering at relatively low levels, and the US indices are at relatively high levels, he added.

“In response to these macro developments, the markets are adopting a more cautious stance as the data suggests that the US economy is performing strongly, which is always a potential signal for the Federal Reserve to prolong its cycle of interest-rate hikes.”