Singapore stocks fall as hopes for early Fed rate cut dim; STI down 0.3%

SINGAPORE shares ended Monday (Jun 10) lower after stronger-than-expected US jobs figures last Friday hurt market sentiment. The benchmark Straits Times Index (STI) fell 0.3 per cent or 8.69 points to 3,322.08. Across the broader market, losers beat gainers 239 to 158, with 822 million securities worth S$940.5 million changing hands.

Regional markets were mixed. Japan’s Nikkei 225 gained 0.9 per cent, South Korea’s Kospi fell 0.8 per cent and the Kuala Lumpur Composite Index shed 0.2 per cent.

In a research note on Monday, Maybank head of research Singapore Thilan Wickramasinghe said that while a strong US jobs print on Friday dashed hopes of an early Fed interest rate cut, he remains bullish on local markets.

“We have raised the year-end STI target to 3,583 as higher-for-longer interest rates bring Singapore’s defensive and low-gearing characteristics back in favour,” he said. Wickramasinghe added that the recent first-quarter results season confirms his hypothesis as market earnings accelerated at the fastest pace since the second quarter of last year.

“Importantly, nearly a third of our coverage companies delivered earnings ahead of forecasts while downgrades fell. This means market expectations are bottoming out, giving greater clarity on the STI’s earnings growth,” he said.

On the STI, Yangzijiang Shipbuilding was the top performer, rising 2.9 per cent or S$0.07 to S$2.48. Meanwhile, Hongkong Land came in at the bottom of the table, falling 3.2 per cent or US$0.11 to US$3.31.

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The trio of banks were mixed. DBS gained 0.3 per cent or S$0.11 to S$35.63, while UOB slipped 0.1 per cent or S$0.03 to S$30.73 and OCBC fell 0.3 per cent or S$0.04 to S$14.23.