Singapore stocks end Tuesday flat as traders eye potential interest rate cuts
Uma Devi
STOCK markets on Tuesday (Dec 26) were a mixed bag of results, as hopes of interest rate cuts – on the back of subdued inflation data in the US – sparked investor optimism, but investors chose to tread carefully.
In Singapore, however, traders were more cautious despite news of the state’s headline and core inflation figures easing in November.
The local benchmark Straits Times Index ended the day largely flat – with a decline of 0.01 per cent or 0.34 point to 3,139.98. Across the broader market, advancers narrowly beat decliners 194 to 184, after 538.4 million securities worth a collective S$355.9 million changed hands.
Across the region, stock markets that were open for trading posted a mixed set of results for the day. The Nikkei 225 gained 0.2 per cent, and the Kospi added 0.1 per cent. On the other hand, the Bursa fell 0.3 per cent and the SSE Composite Index fell 0.7 per cent.
Stephen Innes, managing partner at SPI Asset Management, noted that while markets are more optimistic, any “hefty interest rate movement” this week is unlikely.
“While more downward adjustments are conceivable in the coming year, other not-so-favourable factors would likely need to influence them,” he said, adding that it would take a fear of a “hard landing” for the Federal Reserve to consider a rate cut of over 150 basis points.
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On the Singapore bourse, Nio was the top advancer for the day, gaining 5.4 per cent or US$0.43 to US$8.46.
The trio of lenders ended the day mixed. UOB was the only local bank to book a gain – adding 0.2 per cent or S$0.05 to S$27.65. DBS fell 0.3 per cent or S$0.10 to S$31.90, while OCBC lost 0.1 per cent or S$0.01 to S$12.65.
Jardine Matheson Holdings was among the biggest losers for the day, shedding 0.3 per cent or US$0.11 to US$39.55.
Seatrium , Chasen Holdings and Rex International were among the most heavily traded stocks for the day.
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