Singapore stocks rise amid Fed rate-cut hopes; STI up 0.4%
Yangzijiang Shipbuilding is the top gainer on the benchmark index
SINGAPORE shares reversed earlier losses to close in the black on Thursday (Dec 12), with Asia-Pacific markets mostly in positive territory as mild inflation data from the United States fuelled expectations of a Federal Reserve interest-rate cut this month.
The Straits Times Index (STI) was up 0.4 per cent or 16.45 points at 3,809.27. Across the broader market, gainers outnumbered losers 272 to 212, after 963.3 million securities worth S$974.7 million changed hands.
On the STI, Yangzijiang Shipbuilding was the top gainer, rising 2.2 per cent or S$0.06 to S$2.81. Sats lost the most, down 1.6 per cent or S$0.06 at S$3.66.
The three local banks started the day in the red, but turned around by the close. DBS gained 0.3 per cent or S$0.12 to S$43.80. UOB rose 0.4 per cent or S$0.15 to S$37.25, and OCBC was up 1 per cent or S$0.17 at S$16.80.
Analysts are getting bullish on vegetable and edible-oil engineering process company Oiltek. Both UOB Kay Hian and Lim & Tan Securities issued “buy” calls on the stock, in light of a strong order book and increasing demand for sustainable aviation fuel.
Across the broader region, markets closed mostly in the green. The FTSE Bursa Malaysia KLCI lost 0.1 per cent, while Hong Kong’s Hang Seng Index grew 1.2 per cent. Japan’s Nikkei 225 closed 1.2 per cent higher, and South Korea’s Kospi was up 1.6 per cent.
US inflation data had been in line with expectations, matching forecasts by economists polled by Reuters – and raising hopes that the Fed will cut interest rates at its meeting next week.
“The Federal Reserve is set to cut interest rates by 25 basis points to 4.25 to 4.5 per cent this month as underlying inflationary pressures keep gradually easing,” said Mansoor Mohi-uddin, chief economist at the Bank of Singapore, in a note on Thursday.
“The Fed’s rate cuts and the prospects of (fewer) regulations and new tax cuts under the next US government should keep supporting equities,” he added.
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