Singapore stocks fall amid mixed regional showing; STI down 1.1%

SINGAPORE stocks fell amid a mixed regional performance on Thursday (Feb 23) as the Straits Times Index (STI) shed 1.1 per cent or 35.11 points to 3,264.93. Across the broader market, gainers beat losers 276 to 249 after 1.6 billion securities worth S$1.4 billion changed hands.

Asian markets were mixed on Thursday. Hong Kong’s Hang Seng Index shed 0.4 per cent, while Japan’s Nikkei 225 fell 1.3 per cent and South Korea’s Kospi gained 0.9 per cent.

In a note on Thursday, UOB senior economist Alvin Liew said that the latest minutes from the Federal Open Market Committee (FOMC) meeting, which took place from Jan 31 to Feb 1, suggested that the Federal Reserve was “not quite near the end of the tightening cycle”, despite the improving inflation trajectory.

He also pointed out that while FOMC voters unanimously opted to dial down to a 25-basis-point hike in February, a few non-voters advocated a bigger 50-basis-point hike.

Still, Liew expected two more 25-basis-point hikes to the terminal Federal Funds Target Rate – to 5.25 per cent – at the March and May FOMC meetings, and for the rate to remain unchanged for the rest of 2023.

On the STI, Sats was the top gainer, gaining 2.9 per cent or S$0.08 to S$2.80. This comes after the company had earlier announced a renounceable rights issue of S$2.20 per share to raise S$798.8 million to partially fund its acquisition of Paris-based Worldwide Flight Services.

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Sats falls as much as 4.4% after announcing issue of 363.1 million new shares at S$2.20 apiece

Keppel Corp shares to trade ex-distribution on Feb 23; SGX says short sellers must deliver shares

Meanwhile, Keppel Corp saw its share price decline by 26.4 per cent or S$1.94 to S$5.40 after it began trading on an ex-distribution basis. Shareholders who buy the stock from Thursday onwards will no longer be entitled to the distribution in specie of 19.1 Sembcorp Marine shares per Keppel share held. Based on its adjusted closing price of S$4.78, Keppel shares rose 13 per cent.