Singapore stocks flat amid mixed regional trading; STI up 0.1%

THE Straits Times Index (STI) gained 0.1 per cent or 2.73 points to close at 3,324.55 points on Monday (Apr 24), as data showed local inflation rates in March matching economists’ median estimates.

Across the broader market, gainers outnumbered losers 285 to 278, with 1.2 billion securities worth S$839.7 million traded.

Credit Suisse head of Asia-Pacific research Kum Soekching said: “With a dimmer economic growth outlook and a peak in bank earnings, we see fewer earnings-led drivers for the market going forward.”

She added: “However, we expect inexpensive valuations and an attractive dividend yield of 4.2 per cent to provide downside support for the Singapore market.”

Furthermore, she expects the consumer staples sector to outperform on defensive growth in a slowing macroeconomic environment, and on inflation protection from decent pricing power.

Data released on Monday showed that both headline and core inflation rates stood at 5.5 per cent and 5 per cent respectively, which were largely in line with economists’ expectations.

Regional markets were mixed on Monday. Japan’s Nikkei 225 rose 0.1 per cent, while South Korea’s Kospi fell 0.8 per cent and Hong Kong’s Hang Seng Index declined 0.6 per cent.

Yangzijiang Shipbuilding was the biggest winner on Singapore’s blue-chip index, adding 1.6 per cent or S$0.02 to S$1.25.

Meanwhile, Thai Beverage was at the bottom of the table, shedding 1.5 per cent or S$0.01 to S$0.65.

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Singapore headline, core inflation ease in March as expected

The trio of banks also closed mixed on Monday. DBS gained 0.7 per cent or S$0.24 to S$32.87 and OCBC gained 0.2 per cent or S$0.03 to S$12.82 while UOB shed 0.4 per cent or S$0.11 to S$29.58.