Singapore stocks extend rally on Fed-fuelled rate optimism; STI up 1%
Uma Devi
THE year-end cheer was evident in the region on Wednesday (Dec 27) as optimism fuelled stock markets.
In Singapore, the Straits Times Index (STI) gained 1 per cent or 30.78 points to end the trading day at 3,170.76. Across the broader market, advancers outpaced decliners 377 to 210. The daily turnover came in at 928.3 million securities, worth a total of S$788 million.
It was a similar story across the region, with markets ending the day firmly in the black. The Nikkei 225 was up 1.1 per cent, the Hang Seng Index gained 1.7 per cent, while the Bursa advanced 0.2 per cent. The Kospi and ASX 200 added 0.4 and 0.8 per cent, respectively.
SPI Asset Management managing partner Stephen Innes said a moderation in headline and core inflation has created “a pathway for central banks to ease off on restrictive policies”.
“As inflation subsides, the Federal Reserve sees higher real rates becoming increasingly economically unfavourable, possibly reducing the necessity for policy rates to remain in prohibitive territory,” he added.
Nio was the top gainer on the Singapore bourse for the second consecutive day, adding 7.7 per cent or US$0.65 to US$9.11.
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The trio of local lenders were also among the top gainers for the day. DBS rose 1.4 per cent or S$0.44 to S$32.34, UOB gained 0.9 per cent or S$0.25 to S$27.90, while OCBC climbed 1 per cent or S$0.13 to S$12.78.
Newly listed livestreaming platform 17Live was one of the biggest losers, falling 3.6 per cent or S$0.06 to S$1.61.
Among the constituents, Singtel was the only stock to end the day in the red with a decline of 0.4 per cent or S$0.01 to S$2.42.
Seatrium , Medtecs and Singtel were the most heavily traded stocks by volume for the day.
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