Singapore stocks struggle for direction on Friday; STI up 0.03%

SINGAPORE shares struggled for direction amid mixed regional trading on Friday (Jan 3).

The Straits Times Index (STI) rose 0.03 per cent or 1.02 points to 3,801.83. Across the broader market, gainers beat losers 349 to 178 after one billion securities worth S$869.7 million changed hands.

Seatrium was the top gainer on the index, and the most actively transacted counter in terms of volume. The rig builder’s shares rose 5.8 per cent or S$0.12 to S$2.19, after 60.5 million units changed hands.

Meanwhile, Jardine Matheson Holdings was at the bottom of the table. It fell 1.8 per cent or US$0.73 to US$40.98.

The local banks were also mixed on Friday. UOB gained 0.1 per cent or S$0.03 to S$36.58, while DBS shed 0.8 per cent or S$0.34 to S$43.62, and OCBC fell 0.4 per cent or S$0.07 to S$16.57.

Aidan Shevlin, head of international liquidity fund management at JP Morgan Asset Management, said in a report on Friday that moderating prices have allowed Asian central banks to switch their focus from curbing inflation to supporting economic growth through rate cuts.

But the frequency and magnitude of such actions remain uncertain, and market volatility will be further amplified by central banks’ reliance on unreliable data, he added.

“Solid economic growth, supported by robust exports, has allowed the traditionally hawkish Monetary Authority of Singapore to maintain a strong currency stance to combat imported inflation. 

“With prices now moderating, risks have become more balanced, opening the possibility of policy easing in the first half of 2025,” he said.

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Markets in the region were mixed on Friday. South Korea’s Kospi gained 1.8 per cent, and Hong Kong’s Hang Seng Index rose 0.7 per cent, while the Kuala Lumpur Composite Index fell 0.2 per cent.