Singapore stocks rise as US inflation data stays within expectations; STI up 1%
Yong Jun Yuan
THE Straits Times Index (STI) rose 1 per cent, or 30.58 points, to 3,249.51 amid a regional rally on Thursday (Sep 14).
Across the broader market, gainers beat losers 313 to 225 after 1.2 billion securities worth S$916.8 million changed hands.
Major markets in Asia also ended Thursday in the black. Hong Kong’s Hang Seng Index rose 0.2 per cent, Japan’s Nikkei 225 gained 1.4 per cent, and South Korea’s Kospi climbed 1.5 per cent.
The regional gains came as recently released US inflation data was largely within expectations.
The consumer price index (CPI) rose 0.6 per cent in August month on month, with petrol prices accounting for more than half of the increase.
Core CPI, which excludes food and energy costs, rose by 0.3 per cent month on month.
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In a note on Thursday, Saxo’s Asia-Pacific strategy team said that as US inflation remained firm, the Federal Reserve could continue to push for higher-for-longer interest rates at next week’s Federal Open Market Committee (FOMC) meeting. However, it noted that Wall Street took the news well.
“The CPI prints released were generally considered as not having an impact on a probable pause at the FOMC next week,” the team said.
On the STI, DBS was the top gainer, rising 1.6 per cent or S$0.55 to S$34.09.
The other local banks were also in the black, with UOB gaining 1.3 per cent to S$28.99, and OCBC rising 1 per cent to S$12.70.
Meanwhile, Frasers Logistics and Commercial Trust landed at the bottom of the table. Its units shed 0.9 per cent, or S$0.01, to finish at S$1.15.
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