Singapore stocks gain on Thursday as Fed pauses rate hikes; STI up 0.8%
Raphael Lim
SINGAPORE stocks gained on Thursday (Jun 15) amid mixed trading in the region.
The benchmark Straits Times Index (STI) rose 0.8 per cent or 24.71 points to 3,242.85.
Elsewhere in the region, Japan’s Nikkei 225 and South Korea’s Kospi ended in the red. Key indices in Hong Kong, Shanghai, Australia and Taiwan closed higher, following the US Federal Reserve’s decision to pause rate hikes.
The Fed, however, signalled that more tightening could come before the year ends.
SPI Asset Management managing partner Stephen Innes said the Fed’s decision to move further on rates, either up or down, will likely be swayed by inflation and growth data.
“Interestingly, growth data has been improving, suggesting more hikes may be necessary, while inflation has been decelerating, suggesting fewer hikes are necessary,” he said. “Most (Federal Open Market Committee) members predict the need for higher rates from here, suggesting that the balance of growth and inflation may not yet be optimal.”
On the local bourse, gainers outnumbered losers 352 to 219, after 1.6 billion securities worth S$1.4 billion changed hands.
Investors continued to buy Singapore Airlines shares, sending the counter up for a 12th consecutive day. It rose 4.1 per cent to S$7.91, and was the most actively traded by value, with some 27.5 million shares worth S$215 million traded.
Shares of Keppel Corp led the STI gainers, surging 5.4 per cent to close at S$7.05. Other top performers included Mapletree Logistics Trust and Venture Corp , which both rose 3.6 per cent.
Shares of ST Engineering fell 0.8 per cent to close at S$3.68, landing at the bottom of the index performance table.
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