Singapore stocks rise on Wednesday ahead of Fed decision; STI up 0.9%

SINGAPORE stocks surged higher on Wednesday (Jun 14) amid mixed regional trading as investors awaited the latest monetary policy decision from the US Federal Reserve.

The benchmark Straits Times Index (STI) rose 0.9 per cent or 28.74 points to close at 3,218.14.

Keppel Corporation led the index gainers, rising 2.8 per cent to close at S$6.69. Other top gainers include CapitaLand Investment , which also rose 2.8 per cent, and Singapore Airlines (SIA), which was up 2.7 per cent.

SIA has been on an 11-day winning streak, and it was also the most actively traded counter by value on Wednesday, with 19.4 million shares worth S$146.5 million changing hands.

Meanwhile, ThaiBev ended the day at the bottom of the index performance table, after slipping 1.7 per cent to close at S$0.565.

Across the broader market, gainers outnumbered losers 347 to 214 after 1.8 billion securities worth S$1.3 billion were traded.

Elsewhere in the region, key indices in South Korea, Hong Kong and Shanghai fell between 0.1 per cent and 0.7 per cent. Meanwhile, the Nikkei 225 in Japan and Australia’s ASX 200 tracked overnight gains on Wall Street as US data showed signs of cooling inflation.

Saxo market strategist Charu Chanana noted that US headline inflation showed a slowdown, but data on core inflation was still slightly higher than expectations on a year-on-year basis.

She added that the Fed would most likely hold rates for its June meeting on Wednesday, but noted that the tone may still lean hawkish.

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“There are still reasons for the Fed to hike rates – considering the labour market strength (and) also the easing financial conditions given the pace of gains in equities,” she said. “The bigger question is whether we will get the next rate hike in July.“