Singapore stocks end week lower amid inflation data jitters; STI down 1%
Uma Devi
LOCAL shares joined a global stock rout on Friday (Oct 13) to finish the week lower, as investors took stock of stronger-than-expected inflation figures in the US, which re-ignited fears about another interest rate hike this year.
The benchmark Straits Times Index slipped 1 per cent or 32.9 points to end the trading week at 3,185.79. Across the broader market, decliners far outnumbered advancers 339 to 234 as 848.5 million securities worth S$777.9 million changed hands.
It was a sea of red across the region, with markets closing lower on Friday amid cautious investor sentiments. The Kospi fell 1 per cent; the Hang Seng Index lost 2.3 per cent and the Nikkei 225 closed 0.6 per cent lower. The ASX 200 also fell 0.6 per cent, while the Bursa closed flat.
UOB senior economist Alvin Liew said in a note that the bank expects headline inflation in the US to head lower towards the end of the year, but higher energy prices and the slower than expected pace of easing for accommodation costs could pose roadblocks for the decline.
Liew added that UOB is expecting the Federal Reserve to hike interest rates for one final time in November’s meeting.
On the Singapore bourse, Yangzijiang Shipbuilding was one of the top advancers for the day. The counter booked a gain of 2.5 per cent or S$0.04 to close at S$1.63, and also emerged among the most heavily traded stocks for the day by volume.
Nio was the top decliner for the day, shedding 5.4 per cent or US$0.48 to US$8.50. The trio of local lenders were also among the biggest decliners for the day. UOB fared the worst among the three stocks, falling 1.2 per cent or S$0.35 to S$28.34. DBS lost 0.7 per cent or S$0.23 to S$33.77 while OCBC fell 0.8 per cent or S$0.10 to S$12.98.
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