Singapore stocks end higher on Monday as Middle East conflict enters third week; STI up 0.6%

[SINGAPORE] Singapore stocks ended higher on Monday (Mar 16), as the conflict in the Middle East entered its third week and investors looked ahead to the US Federal Reserve’s upcoming monetary policy meeting.

The benchmark Straits Times Index (STI) gained 0.6 per cent, or 26.42 points, to close at 4,868.69. The iEdge Singapore Next 50 Index, however, fell 0.5 per cent, or 7.5 points, to 1,436.05.

Within the iEdge Singapore Next 50 Index, First Resources was the top gainer, rising 4.1 per cent or S$0.11 to S$2.79. Sasseur Real Estate Investment Trust was the biggest decliner, falling 6.6 per cent or S$0.045 to S$0.635.

Across the broader market, gainers outnumbered losers 312 to 274, after 1.4 billion securities worth S$1.8 billion changed hands.

Key regional indices were mixed. Hong Kong’s Hang Seng Index gained 1.5 per cent, Japan’s Nikkei 225 fell 0.1 per cent, South Korea’s Kospi rose 1.1 per cent and Malaysia’s FTSE Bursa Malaysia KLCI slipped 0.1 per cent.

Bourse operator Singapore Exchange led the STI gainers, rising 2.9 per cent or S$0.53 to close at S$18.93.

The three local banks also finished higher. DBS climbed 1.2 per cent or S$0.67 to S$55.98, OCBC gained 0.6 per cent or S$0.12 to end at S$20.75, and UOB was up 0.5 per cent or S$0.19 at S$36.35.

UOL was the worst performer among the STI constituents, falling 5.2 per cent or S$0.54 to S$9.76.

Property developers City Developments Ltd (minus 4.8 per cent) and Hongkong Land (minus 4.1 per cent) also declined on Monday, ahead of the Fed’s interest rate decision on Wednesday.

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Analysts broadly expect the US central bank to keep rates unchanged within a range of 3.5 to 3.75 per cent.

“Back in January, the Fed made it clear that the bar for easing required convincing evidence that inflation was trending decisively lower,” said Stephen Innes, managing partner of SPI Asset Management, in a Monday note.

“The events unfolding in the Gulf now threaten to move the inflation compass in the opposite direction.”