Singapore stocks eke out gains with Fed rate guidance in focus; STI up 0.1%
Tan Nai Lun
SINGAPORE shares ended slightly higher on Wednesday (Jan 31), as investors awaited guidance from the Federal Reserve on the interest rate cut trajectory.
The benchmark Straits Times Index (STI) rose 0.1 per cent or 2.97 points to 3,153.01. Across the broader market, losers outnumbered gainers 310 to 224, after 1.7 billion securities worth S$1.3 billion changed hands.
Key indices in the region were mixed. The Hang Seng Index lost 1.4 per cent and the Kospi Composite Index slipped 0.1 per cent. Meanwhile, the Nikkei 225 advanced 0.6 per cent and the FTSE Bursa Malaysia KLCI inched up 0.02 per cent.
Investors were likely focused on guidance from the Fed as they navigate evolving market conditions and anticipate potential shifts in monetary policy, said Stephen Innes, managing partner at SPI Asset Management.
While the US central bank is not expected to cut rates in March, the primary market-moving focal point is likely whether such early rate-cut discussions are being entertained, he noted.
“Indeed, it’s poised to be a blockbuster day as Fed chair Jerome Powell has the potential to endorse or push back current bullish market dynamics and ebullient investor sentiment,” Innes said.
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On the STI, Frasers Logistics & Commercial Trust was the biggest gainer, rising 3.7 per cent or S$0.04 to S$1.12.
The trust leased 128,000 square metres of space across its portfolio in the first quarter ended Dec 31, with a portfolio occupancy rate of 95.8 per cent, its manager said earlier this week.
Meanwhile, the biggest decliner on the STI was DFI Retail Group , which lost 4.8 per cent or US$0.10 to US$2.
The trio of local banks all rose on Wednesday. DBS gained 0.2 per cent or S$0.06 to S$31.88, OCBC climbed 0.6 per cent or S$0.07 to S$12.89, while UOB rose 0.4 per cent or S$0.11 to S$28.37.
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