Singapore stocks fall amid tepid sentiment on firm US inflation rate; STI down 0.3%

SINGAPORE stocks fell on Thursday (Apr 11) as investor sentiment softened overnight after higher-than-expected US inflation rates led investors to push interest rate cut expectations further back.

The benchmark Straits Times Index (STI) fell 0.3 per cent or 9.91 points to 3,227.61. Across the broader market, gainers beat losers 319 to 305 after 2.1 billion securities worth S$1.4 billion changed hands.

Regional markets ended Thursday mixed. Japan’s Nikkei 225 declined 0.4 per cent, Hong Kong’s Hang Seng Index shed 0.3 per cent, and South Korea’s Kospi inched up 0.1 per cent.

SPI Asset Management managing partner Stephen Innes said that the US economy has shown significant underlying strength this year, leaving little room for a further slowdown in price expansion within the services sector.

“Now that the data has thoroughly shattered policymakers’ dovish hopes, market participants are viewing the situation through a much less dovish lens, expecting only 50 basis points of easing for the remainder of 2024,” he said.

“Perhaps even that is a stretch, as (US Federal Reserve) board members may consider this outlook optimistic in light of the unexpectedly hotter price pressure.”

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He added that a surging US dollar will be “like an anvil” hanging over risk markets after the euro, pound and yen fell in response to higher-for-longer interest rate expectations in the US.

On the STI, Jardine Cycle & Carriage : C07 0% was the top gainer, rising 2.3 per cent or S$0.60 to S$26.71.

Meanwhile, Mapletree Logistics Trust : M44U 0% finished at the bottom of the table. It declined 2.7 per cent or S$0.04 to S$1.46.

The trio of banks ended mixed on Thursday. DBS : D05 0%gained 0.6 per cent or S$0.21 to close at S$36, OCBC : O39 0%was up 0.4 per cent or S$0.05 to S$13.86, while UOB : U11 0%fell 0.4 per cent or S$0.12 to S$29.50.