Singapore stocks flat amid cautious trading on inflation concerns
Tan Nai Lun
SINGAPORE stocks ended largely flat on Wednesday (May 10), as investors remained cautious ahead of the release of US inflation data.
The Straits Times Index (STI) inched down 0.02 per cent or 0.66 point to 3,242.29. Gainers outnumbered losers 273 to 255, with 1.2 billion securities worth S$815.1 million changing hands.
Stephen Innes, managing partner at SPI Asset Management, noted that risk markets are moving cautiously, as traders suspect the risks around the US Consumer Price Index are more vulnerable to pricing out than pricing more rate cuts in 2023.
He said markets have shown a relatively benign response to regional banking woes in the US, which gives the US Federal Reserve less cause for concern.
“But with cuts already priced into the back end of 2023, it’s unlikely a softer print will lead to more near-term rate cuts,” he said.
Regional markets were largely in the red, tracking losses on Wall Street. The Nikkei 225 lost 0.4 per cent, the Hang Seng Index fell 0.5 per cent, the FTSE Bursa Malaysia KLCI Index shed 0.5 per cent and the Kospi Composite Index declined 0.6 per cent.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
In Singapore, the top gainer on the STI was Sembcorp Industries, which gained 1.5 per cent or S$0.07 to S$4.66. Its shares hit an eight-year high on Wednesday, after the group said there was no definitive deal to sell its waste-management unit.
The top decliner on the STI was Yangzijiang Shipbuilding, which fell 1.6 per cent or S$0.02 to S$1.22.
The trio of local banks traded mixed. DBS fell 0.3 per cent or S$0.08 to S$31.62, and UOB lost 0.2 per cent or S$0.05 to S$28.12.
OCBC rose 0.6 per cent or S$0.07 to S$12.32. The bank on Wednesday posted a record net profit of S$1.9 billion for its first quarter ended Mar 31, up 39 per cent year on year, buoyed by strong net interest income growth.
Copyright SPH Media. All rights reserved.
