Singapore stocks edge lower as investors digest MAS hold, stronger GDP

[SINGAPORE] Singapore stocks ended slightly lower on Wednesday (Oct 14), as investors digested the Monetary Authority of Singapore’s (MAS) decision to hold monetary policy settings as well as the stronger-than-expected third-quarter economic growth.

The benchmark Straits Times Index (STI) slipped 0.1 per cent or 7.17 points to 5,423.33.

Jardine Matheson was the top gainer on the blue-chip index, rising 2.3 per cent or US$1.32 to US$57.74. At the other end of the table, Keppel DC Reit fell 1.9 per cent or S$0.04 to S$2.07, making it the STI’s worst performer.

The three local banks closed mixed. UOB gained 0.3 per cent or S$0.13 to S$41.06 while DBS slipped 0.2 per cent or S$0.13 to S$74.34 and OCBC fell 0.7 per cent or S$0.20 to S$29.

Across the broader market, losers outnumbered gainers 284 to 238, with 980.7 million securities worth S$1.9 billion changing hands.

MAS kept its Singapore dollar nominal effective exchange rate policy settings unchanged on Wednesday, pausing after two consecutive tightenings earlier this year.

The decision came as advance estimates from the Ministry of Energy, Trade and Industry showed that Singapore’s economy grew 5.4 per cent year on year in Q3, beating the 5.1 per cent consensus forecast in a Bloomberg poll.

The stronger-than-expected reading, as well as upward revisions to earlier data, prompted UOB, DBS, OCBC and Maybank to raise their full-year 2026 growth forecasts.

MAS said the economy is expected to continue expanding in the quarters ahead, with strong orders for artificial intelligence products and increased production capacity supporting firm growth in technology-related sectors in the near term.

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The central bank also expects core inflation to “ease more discernibly” from the middle of 2027, though it cautioned that risks remain tilted to the upside amid the possibility of renewed energy and food price shocks.

Key regional markets were mixed. Hong Kong’s Hang Seng Index lost 0.1 per cent, while Japan’s Nikkei 225 edged down 0.05 per cent and South Korea’s Kospi fell 0.4 per cent. The FTSE Bursa Malaysia KLCI bucked the trend, advancing 0.3 per cent.

This article was written with the assistance of AI and reviewed by a reporter