Singapore stocks end higher as traders mull inflation outlook, corporate earnings; STI up 0.2%

THE local stock market edged higher on Wednesday (Feb 8) as investors mulled over the latest remarks from US Federal Reserve chairman Jerome Powell. 

Powell’s acknowledgement that inflation was starting to cool in the US was evened out by a warning that stronger-than-expected economic data could bring about more rate hikes, which ultimately did little to ease the sentiments of traders around the region. 

The Straits Times Index inched up by 0.2 per cent or 7.68 points to finish the day at 3,388.52. Across the broader market, decliners narrowly beat out advancers 274 to 269. Daily turnover came in at 1.2 billion securities worth a collective S$962 million. 

Around the region, markets mostly closed lower on Wednesday. The Nikkei 225 lost 0.3 per cent, the Hang Seng Index shed 0.1 per cent, and the FTSE Bursa Malaysia KLCI lost 0.4 per cent. Meanwhile, the Kospi added 1.3 per cent and the ASX 200 gained 0.4 per cent. 

Stephen Innes, managing partner at SPI Asset Management, said Powell’s latest comments meant there was still no “definitive hawkish deviation” from the Federal Reserve’s plot trajectory.

For Asia, he said investors were in need of a “definite sign” that economic growth in China was catching up to where the market was pricing second-quarter recovery before “taking the next leap of faith”. 

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In Singapore, banks were among the biggest gainers on Wednesday. UOB came out on top, adding 1 per cent or S$0.30 to stand at S$30.84. DBS rose 0.6 per cent or S$0.20 to S$36.19, while OCBC advanced 1 per cent or S$0.13 to S$13.15.

Best World International , which had resumed trading in November last year after a three-and-a-half-year suspension, was one of the biggest losers on Wednesday. The stock lost 10.7 per cent or S$0.27 to finish at S$2.26. 

StarHub was another loser, shedding 6.3 per cent or S$0.07 to close at S$1.04 after it released a disappointing set of H2 results on Tuesday. The telco posted a 98.4 per cent decline in earnings for H2 to S$1.3 million despite higher revenue.