Singapore stocks fall as US interest rate fears dampen China optimism; STI sinks 1.3%

THE Straits Times Index (STI) fell 1.3 per cent or 42.76 points to 3,262.91 points on Tuesday (Jan 10).

In the wider Singapore market, losers outnumbered gainers 266 to 233, with 989.9 million shares worth S$1.16 billion traded.

The decline came amid mixed trading across key Asian markets, as renewed fears over higher-for-longer US interest rates overshadowed optimism over China’s reopening.

Japan’s Nikkei 225 rose 0.8 per cent and South Korea’s Kospi edged up 0.1 per cent, while the Shanghai Composite Index dipped 0.2 per cent and the FTSE Bursa Malaysia KLCI lost 0.6 per cent.

“The rally has been fast and furious, so it is only natural to expect some profit-taking. There are also some risks to keep tabs on, such as the hawkish shift of the Bank of Japan and company earnings,” said Saxo market strategist Charu Chanana.

The top performer on Singapore’s blue-chip index was Jardine Cycle & Carriage , which rose 2 per cent or S$0.57 to S$28.51.

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At the bottom of the table was Frasers Logistics & Commercial Trust , which fell 4.2 per cent or S$0.05 to S$1.15.

The most heavily traded counter among the STI constituents was Thai Beverage . The counter slipped 0.7 per cent or S$0.005 to close at S$0.705 after 66.1 million shares changed hands.

The trio of local banks all finished lower. DBS lost 2 per cent or S$0.69 to close at S$34.56, UOB fell 1.9 per cent or S$0.57 to S$30.10, and OCBC dropped 1.3 per cent or S$0.16 to end at S$12.54.